Baroness Neville-Rolfe (Con)

My Lords, I rise to move the amendment in my name and that of my noble friend Lord Altrincham, and to support the amendment tabled by my noble friend Lord Leigh of Hurley. These amendments are not merely technical adjustments; they represent a critical step in recognising and supporting the social care sector, which remains indispensable to our society. Amendment 47 proposes an increase in the employment allowance available to employers in the social care sector, raising it from £10,500 to £20,000 per tax year. This increase is of profound importance. Our social care providers are grappling with rising operational costs, staffing challenges and the ever-present need to deliver high-quality care to some of our most vulnerable citizens. By enhancing the employment allowance, we are providing smaller employers with essential financial relief that will help to sustain their operations in the light of the brutal national insurance increases, retain skilled and valuable staff and invest in the quality improvements that our social care users so desperately need. For too long, the funding constraints on social care providers have meant that many have had to make painful compromises, such as reducing staff numbers, cutting back on training or deferring vital infrastructure improvements. These compromises ultimately diminish the quality of care provided and place additional strain on an already overstretched system. Increasing the allowance would acknowledge that social care is not a peripheral service, but a core pillar of our public support system, deserving of the same robust backing as the NHS, which is being compensated for the additional NICs charges. Moreover, this amendment recognises the unique cost structures within the social care sector. Unlike other industries, social care providers face significant regulatory and operational burdens. They must meet stringent care standards, invest in specialised training and often operate in environments where margins are exceptionally thin. They are the backbone of a sector that touches so many lives. The Local Government Association estimates that the NICs charges create £1.77 billion in additional costs for councils, with £637 million for directly employed staff and £1.13 billion through indirect costs, via commissioned providers, including £628 million for adult social care alone. These are big figures. There is also an important symbolic dimension to these amendments. By focusing on the social care sector, we are sending a clear message that the care of our elderly, our disabled and our most vulnerable is a national priority. This sector has often been on the back foot, underfunded and overlooked. Today we are recognising its importance and taking concrete steps to bolster it. In doing so, we honour the dedication of countless social care workers who deliver care with compassion, often under extremely challenging circumstances. In conclusion, these amendments will provide a much-needed boost to the employment allowance for social care providers and introduce a mechanism of accountability that will ensure that the measures are delivering the intended benefits. They are a testament to our commitment to support a sector that is foundational in the well-being of our communities. I urge my colleagues to join me in supporting these amendments, recognising that those struggling with disabilities and an ever-ageing community, partly thanks to the miracles of modern medicine, need our help. We need to invest in a stronger, fairer and more caring society.