Hospices and GPs in Stratford area fearful of impact of NI increase

FAMILY doctors have warned surgeries may be forced to close, due to tax rises.

It could stop them taking on more doctors and nurses and even lead to staff lay-offs.

The extra cost will also hit crucial end-of-life services, with one hospice boss describing it as “a kick in the teeth.

GPs have shared their shock and concern at having to pay for the hike in employers’ national insurance (NI) contributions announced in last week’s Budget.

Other areas of the NHS will have the 13.8 per cent to 15 per cent increase funded, but as GP practices have been told they are not exempt.

Stratford GP Dr Cristina Ramos of Rother House Medical Centre told the Herald: “It will cripple some practices.

“All the other parts of the NHS are being told they’re exempt from this but suddenly, we’re not. That’s the bit that’s surprising, because we’ve always been treated the same as all the other parts of the of the NHS.”

After talking to other local practices, Dr Ramos revealed “everybody is very much in the same position of feeling overwhelmed about what it means”.

She added: “The challenges for some practices will be huge – this is going to impact on services. We can’t afford for practices to shut or decrease the services we provide.”

Dr Sarah Jarvis, who lives just outside Shipston, warned general practices will “bear the brunt”.

Dr Jarvis, who has 27 years’ experience as a practising GP and is known for her TV appearances including The One Show, Good Morning Britain and ITN, said: “It strikes me as completely iniquitous that the rest of the NHS is having the cost absorbed but general practice is not.

“If the government is going to cover the cost of the NI rises for other parts of the NHS, it should cover the cost of general practice which works entirely for the NHS.

“These GP practices are NHS practices and all our work is for the NHS.”

She added: “We’re at a tipping point – there’s no question it will mean fewer doctors, nurses and other staff available in general practice. And it’s not just GPs – it will impact on anybody employed by a practice.

“That may mean GP partners throw in the towel if they can’t afford to keep going.”

BMA figures show more than 1,000 GP practices in England have permanently closed since 2015.

Employers’ NI contributions go up from 13.8 per cent to 15 per cent from April 2025, and the level at which employers become liable to pay NI on each employee’s salary falls from £9,100 to £5,000 per year, meaning an employee earning £30,000 will cost a GP practice, hospice or care home an extra £866 a year.

The national living wage will also rise from £11.44 to £12.21 an hour from April next year, further bumping up costs.

Dr Katie Bramall-Stainer, chair of the British Medical Association’s GP committee, warned without support to cover the extra expense, GP practices will be “forced to reduce services, implement cost-cutting, shed staff and in some cases, close their doors completely.”

She added that with patient demand rising, being forced to cut back staff or services would be “disastrous for patients”.

South Warwickshire’s end-of-life care services, including hospices, as well as care homes, will also be hit hard.

The NI rises will cost the Myton Hospices an extra £80,000 a year.

Chief executive Ruth Freeman reacted angrily to the news that hospices are not exempt from the increase, describing it as “a kick in the teeth”.

She pointed out: “That’s the salary of two nurses. We’re struggling to provide a valuable, critical service to a growing population, and they bring this in.

“We’re trying desperately hard to raise money to keep our services going, and then, wham, we get hit with this.”

She added: “We’re going to have to look at our budgets and do all that we can to avoid service cuts. We can’t magic money out of thin air.”

Tracey Sheridan, chief executive of the Shakespeare Hospice, which has 71 staff, said the increase in NI contributions will cost the charity an extra £50,000 a year.

She said: “It’s a big concern for us… on an already very tight budge, it’s definitely going to impact on the hospice.”

She added: “Our mission will be to safeguard our clinical services as much as possible.”

Andrew Revell, executive director of Shipston Home Nursing said: “We really don’t want to make service cuts, because what we do is essential.

“Without us it will offload onto the NHS and if the NHS can’t manage the capacity, patient care suffers.”

He added: “Unless they can find a better way of supporting our hospice network it will disappear over time, which will be complete travesty.”