For Local Authorities Only. Grant Thornton – Understanding welfare restructuring: Benefits and risks for local authorities and councils

At the request of a number of local authorities, this webinar has been established to discuss VAT recovery by care providers as a possible solution to offset national insurance cost increases from 1st April 2025.

Aimed at local authorities only with Grant Thornton UK LLP, will be cover how welfare restructuring for VAT purposes works and discussing benefits and risks for both care providers and local authorities, the webinar seeks to cover –

• Historic basis for welfare restructuring
• Welfare restructuring in practice
• Barriers to effectiveness
• Common concerns for LAs
• Q&A

During recent calls between local authorities and care providers, VAT was mentioned and some local authorities explained that they may reconsider if VAT welfare services restructuring is a potential solution that care providers can use to mitigate some of the impact of the NICS increase without increasing costs to the local authority, given the lack of financial support from central government.  Care providers could recover and equivalent of around 4% of the local authority fee, through input VAT which is close to offsetting the 5-6% increase they will incur on the 1st April from NICS changes.

Grant Thornton work for several councils currently on an Audit basis and so are familiar with the impact on councils.  Care Providers are not invited to this session; it is for local authorities only and is designed to be a safe space to refresh their understanding and ask questions.

Grant Thornton will be clear that this a prospective solution and that they do not support retrospective claims, and will cover both the basic principles and the more technical points attendees wish to understand.

The registration link allows attendees to raise any questions in advance which they would like answered on the call in confidence.  There will also be an opportunity to raise questions during the session itself.

The session will be recorded and shared with those who register only.  A further session will be set up a few weeks after to allow local authorities to ask any further clarification questions having had time to consider the first session.  The recording will be made private and only accessible to those authorities who have registered and receive the recording link.