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Minister says she understands pressures facing healthcare after NIC increase
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Minister says she understands pressures facing healthcare after NIC increase

Health Minister Karin Smyth said she understood “the real pressures” facing the health sector from rising employer social security contributions and this was taken into account when allocation of funds.

Calls have been made for GPs, dentists, hospices and pharmacies to be exempt from the increase announced in the Chancellor’s Budget last month.

The British Medical Association’s GP committee said the “cruel” increase would force family doctors to make budget cuts “with an impact on patient care”, while the National Pharmacy Association said it had “pushed even more pharmacies to the brink”.

During an urgent question on the issue, the Liberal Democrats described the increase as a “GP penalty” and the Conservatives urged the Government to “admit it was wrong and make a change”.

The minister told the Commons: “(The urgent question) gives me the opportunity to say to GPs, dentists, hospices and all those in the health and care system who will be affected by the changes to healthcare contributions. national assurance to employers that this government understands the significant pressures they face and takes their representation seriously.

“The Chancellor took into account the impact of changes to National Insurance when she allocated an extra £26 billion to the Department of Health and Social Care.

“There are well-established processes for agreeing funding allocations across the system, we are following these processes now with this issue in mind. »

Labor MP Rachael Maskell (York Central) said the health sector is “really concerned about the increased cost pressures being placed on these services”.

She added: “Will she ensure that the trickle down approach that the department will now have to apply is sufficient to maintain the current level of service, but also to see this transition which is urgently needed in the services of health ?

Shadow Minister Dr Luke Evans in ParliamentShadow Minister Dr Luke Evans in Parliament

Shadow Minister, Dr Luke Evans (Jessica Taylor/UK Parliament/PA)

Ms Smyth said: “The pressures are very real. We understand these pressures. That’s why we’re committed to supporting the NHS and social care system with this additional funding. »

Former Conservative minister Sir Edward Leigh said: “I beg the minister to reconsider and exempt hospices and care homes. »

Ms Smyth responded: “We will continue conversations with all relevant providers in the usual way. »

Shadow minister Dr Luke Evans, a former GP, said: “Many in the health sector would have been delighted to hear the announcement of extra funding for the NHS, only to have the joy of being hit through the realization of a broken manifesto. promise not to increase national insurance contributions.

“This has only been compounded by the discovery that large numbers of frontline care providers – care homes, hospices, care charities, pharmacies, GPs, to name just a few – did not find themselves immune to NI increases, leaving them with crippling staff bills. and the threat of closure and layoffs.

“The palliative care sector expects the cost to be £30 million, closures and redundancies. For GPs, the initial valuation could be as much as £260 million, with redundancies and the cost of 2.2 million appointments.

“And for the care sector, the changes alone will cost £2.4 billion, dwarfing the £600 million announced by social support. Does she therefore accept that council tax must inevitably increase to support this increase?

Dr Evans added that “the sense of anger among pharmacy owners has been intensified exponentially by the Budget”, and urged the Government to “admit it was wrong and make a change”.

The minister said she was “stunned” by Dr Evans’ comments, adding: “He speaks of joy. There was no joy when we inherited the mess they left behind in July.

She added: “We will proceed with the allocation of the additional funds through the normal process, which will be quicker than under his government, as we are committed to giving the sector much more certainty. »

In response to a written question from former Conservative minister Caroline Johnson, Defense Minister Al Carns confirmed the cost to the MoD would be £216m.

On Thursday, Liberal Democrat spokeswoman Alison Bennett said: “Will the minister agree with me that stronger primary care with quicker appointments and fewer people needing to attend? in hospital are better for the NHS and for patients, and if so, will she protect services and put pressure on the Chancellor to end this GP penalty?

Ms Smyth responded: “We will be discussing with general practices as part of contract reforms, over the coming months, as part of the normal process, allocations for next year. »

Conservative backbencher Sir Roger Gale (Herne Bay and Sandwich) said GPs and hospices need answers now on additional funding to help them cope with the employer hike.

He said: “Dr Aleksandra Fox, from my constituency Ash Surgery, is one of many GPs who have brought to my attention the deleterious effects of a poorly thought-out budget.

“Add to this charities like Shooting Star Children’s Hospice and Demelza House Children’s Hospice, which are currently facing problems.

“They can’t wait for discussions to follow normal channels while this crap is sorted out. When are we going to do something about this, please?

Ms Smyth replied: “He says it’s a poorly thought out budget, I don’t know if he agrees or disagrees with the extra funding this government has secured to give to the NHS after the disaster of the last 14 years .”