21/11/2025
Pretty inspirational in shining a light on the VAT issue in social care. Thanks to the The Filo Project and everyone else involved. ❤
When a home care or day care provider is regulated by the CQC, they become VAT exempt and the benefit of which can be passed on to their clients. However, the CQC only regulates providers where services such as personal care / hygiene are provided. There is a wealth of services out there doing amazing things in the adult social care sector which are non-personal care related, yet still critical to an already stretched social care system. Yet the anomaly of not providing personal care, means they don't get a VAT exemption.
It is time this ended, making services more affordable to those that need them and enabling businesses and CICs to thrive. More services would organically grow and that would play a key role in stopping the NHS getting overwhelmed. Helping people before it becomes critical and too late is a mantra that every UK government should be keen to enforce. It's an easy change to make, please make it.
Wes Streeting Stephen Kinnock
Yesterday, I joined Liz and Libby from The Filo Project to deliver Dr Michael and Dr Avril Staunton's open letter to the Chancellor, calling for an end to the VAT on community interest companies (CICs) providing dementia care. 📨
Service users are currently required to pay 20% VAT for each session if their care isn't commissioned by a local authority. This in effect creates a two tier system.
By scrapping VAT on dementia care, as well as other specialist care delivered by CICs, we will see an expansion of providers across the country - addressing some of the issues in the social care system. ✅
You can read about the campaign here👇
https://somersetleveller.co.uk/health-wellbeing/somerset-couple-take-fight-for-fair-vat-on-dementia-care-to-the-treasury/
