Box Power CIC, a not-for-profit energy consultancy, is advocating for increased government support for the struggling care sector. The organisation, already funding hospices and advises major care home operators nationwide, highlights the urgent need for assistance following the government’s planned National insurance increases within their October budget.

Care facilities, hospices and GP’s have been left staring down a crisis, with research from the Nuffield Trust indicating planned NI increases could cost adult social care alone over £900 million per annum. To address this issue, CEO Corin and COO Tricia Dalby of Box Power CIC have proposed a solution offering a win-win for both the Government and care providers.

They recommend the implementation of a temporary funding measure, requiring banks to simply hold a small amount of non-interest-bearing reserves. In the face of ongoing economic turbulence, even mandating the smallest of reserves of just 1% would save the BoE (Bank of England) and HMT (His Majesty’s Treasury) billions each year.

Corin Dalby, CEO of Box Power CIC, says: “In light of the funding crisis facing the care sector, we’re requesting the Chancellor Rachel Reeves adopt this measure to provide some immediate relief to the care sector.

“Over 1.2 million vulnerable people rely on the essential services of care homes, hospices, GPs and learning & disability operators each year. And while NHS trusts have been protected by the planned NI rises – their providers in social care and other care facilities have not received the same treatment. Without immediate relief this is fast becoming a major crisis.”

Even implementing a modest reserve policy, like the European Central Bank, could create huge savings for the government. Data from the New Economics Foundation estimates 1% reserves on all bank deposits could save HMT £1.3 billion each year in interest payments, therefore offsetting planned NI increases for care without any additional taxation.

Currently, UK banks are mandated to keep large reserve amounts following growing political concern after the fallout of the 2008 Financial Crisis. Meaning Banks are paid billions each year for merely holding personal and public funds.

In light of this, recent announcements by the Chancellor and the BoE are actively encouraging increased risk taking in the City. Rachel Reeves has committed herself to rolling back on “overcooked” regulations, delaying Basel 3.1, removing banker fee deferrals, and reducing the City’s reporting burden. Corin and Tricia believe with this increased risk taking, the banks have a moral obligation to help save an entire sector.

The Prime Minister has also made clear that “those with the broadest shoulders should bear the heaviest burden,” yet to date banks are being unburdened by HMT.

Corin adds: “This temporary solution isn’t about politics; it’s about people and the services they rely on. Our solution forgoes the need for any further taxation or funding cuts to other departments – the banking sector is taking record profits and being encouraged to even more risks, I hope the Chancellor can mandate this change to help those facing the sharp edge of this crisis.”

Research from the Care Provider Alliance found that without immediate budgetary relief by government over 1 in 5 (22%) care providers will be forced to close their doors this year. Whilst 77% of care providers will certainly have to draw upon their own reserves just to get by.

The simplicity of Box Power’s solution to alleviate the pressures of the government’s planned NI increases means it could be implemented tomorrow – with the Chancellor not requiring a vote in the Commons on the matter.

Box Power CIC’s initiative counts many prominent backers, including 30+ cross-party MPs, major care groups, hospices, LDs and Charities.