Dentists, pharmacies and GPs warn of pending 'collapse' in services due to National Insurance hike

​​Community Pharmacy NI (representing pharmacists), the BMA (representing doctors), the British Dental Association and Optometry NI have jointly issued a statement warning that the public is now set to see a reduction in services thanks to an increase in National Insurance contributions, paired with a hike to the minimum wage.

It said that “from the start of April, the public are being warned to expect a reduction in opening hours and staff levels, together with longer waits for appointments and services, as contractors struggle to meet demand in the face of these unprecedented financial pressures”.

The amount which employers will have to pay in National Insurance rose yesterday from 13.8% to 15% of employees’ wages.

Meanwhile, these payments now kick in once an employee earns £5,000, down from the previous level of £9,100.

It comes after the Labour government also raised the minimum wage one week earlier.

It jumped by 77p to £12.21 for those aged 21 upwards – an increase of 6.7%.

The four groups above issued a joint statement yesterday saying that the rises mean that “health services risk collapse”.

It said: “The National Insurance and Minimum Wage changes, effective from April 2025, add significantly to staff costs …

“The impact of these additional overheads will be an inevitable reduction in opening hours, cuts to staffing levels, and reduced access to patient care.

“Although commissioned to deliver primary care health services on behalf of the Department of Health, these practitioners are not shielded from the UK government’s latest revenue-raising measures.

“Unlike hospitals or health trusts, which fund staff costs through national health service pay agreements, many of these practitioners (dentists, opticians, community pharmacists and GPs) operate as small businesses and are therefore responsible for their own wage bills.

“For community pharmacy alone, the estimated additional cost from the new rates of National Insurance and minimum wages is £12.4m per annum, with the first hit on wages bills being felt this week.”

Gerard Greene, chief executive of Community Pharmacy NI, was quoted as saying: “The situation is becoming wholly unsustainable and goes entirely against the ethos of delivering public health services.

“Individual pharmacy contractors are personally propping up this service out of their own pockets. We are at the point where, regrettably, this now means difficult decisions on staff numbers and opening hours.”

And Dr Frances O’Hagan, BMA Northern Ireland general practitioners committee chairwoman said: “We cannot overstate the severe financial pressures family practitioner services in Northern Ireland collectively are now under.

“This will inevitably mean increased patient access issues, further shrinkage of health service dentistry in NI, further closure of general practices and community pharmacies, and reduced access to NHS services in optometry practices caused by the removal of automatic access to care for those patients on universal credit.

“The scope for each of us to raise additional revenue is extremely limited and we would not want patients having to pay more when their own finances will be similarly stretched.

“We call on the health minister and the executive to intervene immediately and provide the mitigation and support needed to offset these latest cost increases we now face.”

The Conservatives have labelled the National Insurance change a “jobs tax”.

Chancellor Rachel Reeves said at last year’s budget that the National Insurance move would raise £25bn per year by 2029, and that she did not “take this decision lightly”.

Pointing also to the tariffs unveiled by US President Donald Trump, shadow business and trade secretary Andrew Griffith said: “British firms are already on their knees. Now Labour delivers a one-two punch that could flatten them.”