Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with care and support charities on proposed VAT rule changes.
The government recognises the significant challenges facing the adult social care system and is committed to transforming the sector and supporting the care workforce. At the Spending Review the Government announced an increase of over £4 billion of funding available for adult social care in 2028/29 compared to 2025/26, to support the sector to improve adult social care. This includes an increase to the NHS’s minimum contribution to adult social care via the Better Care Fund, in line with DHSC's Spending Review settlement.
Supplies of welfare services, including the provision of care, are exempt from VAT if they are supplied by eligible bodies, such as public bodies or charities.