Berkshire care providers has warned rising costs imposed by the Budget could have a ‘devastating’ impact on the sector.

The Berkshire Care Association, representing 350 social care providers across the region, has raised ‘urgent concerns’ in an open letter written to the Secretary of State for Health and Social Care, Wes Streeting.

Executive chairman Peter Lomax writes: “We are deeply concerned that, unless fully addressed, the financial pressures introduced in this Budget could severely compromise the stability and sustainability of social care services in our region.”

Labour’s first budget in 14 years announced a rise of national living wage and an increase in employer’s national insurance (NI) contributions.

READ MORE: Dog and owner rescued in Swinley Forest after falling down well

Chancellor Rachel Reeves announced on October 30 that employer NI contributions would rise to 15 per cent, with the threshold at which businesses start to pay for worker’s earnings lowered from £9,100 to £5,000.

Extra support was put in place for the NHS and other public sector organisations, but this did not include most care providers.

Mr Lomax said: “While these wage increases are critical to attracting and retaining talent, they impose a severe strain on social care providers already constrained by fixed fees set by local authorities.”

He added that while retail or leisure industries can adjust prices to ‘offset increased costs’, social care providers cannot as they rely on funding from local authorities.

READ MORE: Caversham pub alcohol sales suspended over theft accusations 

Mr Lomax said that without support, changes brought about in the Budget could have a ‘devastating impact’ on the sector including provider closures, difficulty in keeping staff and worsening services for users.

All of this could place more strain on NHS services, he argued.

An independent review by Lord Darzi warned the NHS in England was in ‘critical condition’, with social care in a ‘dire’ state.

Some Berkshire MPs have been calling for GP surgeries and social care providers to be exempt from the national insurance hike.

READ MORE: Slough Borough Council could lose £3 million on Nova House 

Clive Jones, MP for Wokingham said: “The decision the Chancellor made at the Budget will push those crucial services to the brink. Some could even shut shop.”

Fellow Liberal Democrat MP for Maidenhead, Joshua Reynolds, told BBC Berkshire the government were ignoring social care as the ‘elephant in the room’.

The Berkshire Care Association has asked the Health Secretary for ‘assurances’ that additional wage costs will ‘receive full funding to support the sector’s stability’