Rachel Reeves has been urged to plug a £2billion funding shortfall for care providers

The rise in employers’ national insurance contributions coupled with the minimum wage hike has left providers on the brink, ministers have been warned (file photo)

Nadra Ahmed, chair of the National Care Association and part of Providers Unite, said: ‘Social care is being targeted to create maximum damage.

‘Since the government has taken the reins, we have seen money being taken out and our industry has been seen as an easy target.

‘The only reason social care is still standing and supporting millions is because of providers investing and being innovative.

‘This one move is going to have a catastrophic impact on that ability. This is just a blow to the head and we will see a lot of services go under due to financial pressures.’

She said the care sector has been inspired to take action through images of farmers protesting in Westminster on their tractors.

‘The industry coming together for this protest demonstrates how the sector has had enough,’ she added.

‘We want the government to fund social care and we want an absolute commitment that these exceptional increases from the Budget will be funded.

‘Our hopes are that it will be a day where people can come together and show the public the importance and value of social care.’

Raj Sehgal, who runs five care homes in Norfolk, slammed the government’s Budget as ‘one of the worst things’ ever imposed on the industry and will be at the protest.

The 58-year-old, who started Armscare in 2002 and employs 150 people, said the rise in employers’ NICs would cost the care provider an extra £350,000 a year.

‘Everybody feels that nobody will listen unless we stand outside and make ourselves heard,’ he said.

‘They seem to be deaf to our cries and blind to what is going on. The policies in the Budget have been discriminatory in terms of that health services are exempt but social care is not.’

Mr Sehgal hit out at the treatment of social care as ‘the poor cousin of the NHS that has been ignored’.

Rachael Dodgson, chief executive of support provider Dimensions – which supports 3,500 people – said the national insurance rise would cost her firm £5million next year and the minimum wage hike another £10.2million.

An annual survey of organisations caring for 128,000 people in England released last month found that providers are feeling pressure to close parts of their organisations, hand back contracts to local authorities and consider leaving the market.

Homes will have to pay an estimated extra £800 per staff member from April when employers’ NICs rises to 15 per cent and the minimum wage increases by 6.7 per cent to £12.21 an hour.

The earnings threshold – the amount workers must earn before employers pay National Insurance – has also been cut from £9,100 to £5,000, causing staffing costs to increase further.

Providers Unite is calling for the government to issue an exemption to social care from the rise in NICs like it did with the NHS or adjust local government financing to bridge the funding gap.

Ed Argar, shadow health and social care secretary, said: ‘Labour’s employer NICs hike has been a disaster for social care providers, hospices, GPs, and many others.

‘Despite promising to support them, Rachel Reeves’ job tax is set to blow holes through social care providers finances, with higher costs, jobs cut, and services slashed.

‘At the end of the day it will be the most vulnerable who will be forced to pay the price for this tax raid. Labour should now urgently set out how they will protect them.’

A Department of Health and Social Care spokesman said: ‘We are making available up to £3.7billion extra for local authorities next year.

‘We are also investing in an extra 15,000 home adaptations to support disabled people to stay in their homes, and raising carers allowance by approximately £2,000 a year.’