Skip to main content

The Association of Professional Staffing Companies has shared its concerns again about the impact the recent NI rise will have on the UK’s employers.

These have been raised via a letter to the Chancellor of the Exchequer, Rishi Sunak, and Minister of State for Health, Edward Argar.

Tania Bowers, Global Public Policy Director at APSCo, explained, “While we understand and support the policy intentions of the NICs increase and pending Health and Social Care Levy, we were concerned following the initial announcement of the impact it would have on the UK’s employers. A combination of rising inflationary pressures, increasing wages and skills shortages, has led to employers facing rapidly rising costs in salaries and benefits for their permanent hires and temporary workforce. We felt that an increase in employer costs would exacerbate this situation. The reality four months later is in fact more acute given the cost-of-living crisis and the long-term impacts of the Ukraine war.

“Our members, most particularly in the Healthcare sector, are reporting to us that they are struggling to meet the costs of supply, following the increase, as we feared in January. The price caps set by NHS England and Improvement have not increased to meet the Employer NICs and frameworks including the Crown Commercial Service’s (CCS) Workforce Alliance, are requiring recruitment companies to fund the increased Employer NICs from the supply chain.”

Thinking of appointing Dolan Accountancy?

Give us a call on 01442 795 100 or email

Email Jaime

Bowers added, “Compliance and Vetting is extraordinarily complex in the healthcare sector. Most of our healthcare members are SMEs and can’t achieve economies of scale. Unlike most other sectors they must employ disproportionately large compliance support teams to meet onboarding requirements, ensure registrations and training requirements are up to date and manage internal and external audits. These labour costs must be met from the margin and are in addition to the costs of vetting, such as digital right to work checks, Fitness for Work checks, training, interview, and appraisal costs.

“Unlike the private sector, where there is a valid argument that it is a commercial negotiation as to who should bear the burden of increased supply costs, our members have minimal negotiating power with Trusts on framework. Given the inequality of bargaining power between the contractual parties, this makes the position taken by the frameworks at the very least unfair and arguably an abuse of their dominant position.

“We have urged the Government to investigate the issue of increased employer costs of supply and its treatment by the NHS Frameworks including Workforce Alliance.”

To find out more about contracting please contact Jaime on 01442 795 100 or email

Why Thousands of Contractors Choose Dolan Accountancy

With over 25 years experience in contractor accountancy helping thousands of contractors, freelancers and the self employed, Dolan Accountancy has the specialist skills, reputation and credibility you can trust.

Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £105 + VAT. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795 100 or email or

We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours
  • Free use of Contractor Umbrella – With IR35 Legislation changes we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams
  • Free Access to FreeAgent – We offer all of our clients access to FreeAgent, free of charge
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few

Not Found What You’re Looking For?

Speak to an ExpertLimited or Umbrella?
Take Home Pay Calculator