Perspective: what does the National Insurance (NI) rise mean for you and your investment?

Investing in a Shifting Landscape

In 2025, the economic and political landscape in the UK has shifted again. National Insurance rises, inflation fluctuations, and global geopolitical tensions – from Donald Trump’s renewed presidential campaign to protectionist tariffs – are dominating headlines. It’s a lot. For investors and entrepreneurs, the key question is this:

'Is now still the right time to invest in a UK-based business?'

We believe the answer is a resounding yes – especially when that investment is in a future-proof, socially meaningful sector like health and social care, and backed by a brand like CareYourWay.

Let’s break it down.

The 2025 National Insurance Rise: What It Means

In April 2025, the UK Government introduced a 1.2% rise in employer National Insurance contributions – part of a wider effort to bolster public finances following years of extraordinary spending. On the surface, this sounds like a blow to small businesses. But zoom out, and the picture is more balanced.

In the Autumn Budget, Chancellor Rachel Reeves committed to no further tax increases for businesses during this Parliament. This pledge, paired with a corporate tax rate frozen at 25%, generous full capital expensing, and sector-specific reliefs, has given businesses a rare window of policy stability – and that’s invaluable for any investor.

Most economists – including from the Bank of England and the Institute for Fiscal Studies – have described this Budget as “front-loaded,” meaning any major fiscal pain is already behind us. Now, businesses can plan and scale with confidence, without fearing fresh tax surprises around the corner.

Despite global turbulence, the UK economy has shown resilience. GDP grew by 0.7% in Q1 2025 – outperforming all other G7 nations – and inflation has steadily declined to around 3%. Consumer spending remains strong, and business investment is up by nearly 6% in early 2025, signalling a renewed confidence in domestic growth.

Interest rates are expected to begin falling by late 2025, providing further support to both borrowers and businesses. Meanwhile, incentives like full capital expensing and reforms to unlock pension fund investments into British businesses are breathing life into the SME landscape.

In other words, the UK is certainly not breaking. The playing field is levelling, and smart investors are taking note. But this is where franchising, especially in health and social care, stands apart.

At CareYourWay, we equip every partner with systems, strategies and ongoing support that are specifically designed to protect margins and enhance profitability, even in challenging climates.

Why Health & Social Care?

The UK’s ageing population isn’t a future problem but rather a right-now reality. By 2030, over 20% of the population will be aged 65 or older. That shift is creating sustained, non-discretionary demand for domiciliary care. People don’t (generally) cancel their care packages because of an interest rate rise. That makes this one of the most resilient sectors in the economy.

On top of that, Government and NHS commissioning bodies are increasingly favouring community-based solutions – like the personalised home care offered by CareYourWay – over institutional settings. In fact, many of our franchisees are now piloting NHS-linked projects, where their services are being part-funded as part of wider preventative health strategies.

The Investor's View

Global investment houses like Vanguard are now forecasting that UK-based businesses will outperform their U.S. counterparts over the next decade – largely due to the UK’s more attractive starting valuations and stronger dividend yields. M&A activity has surged too: the UK was the third most targeted country in the world for business acquisitions last year.

In other words, savvy investors are buying into Britain again – and health and social care remains at the top of that list. Why? Because the sector is need-driven, index-linked, and funded by a mix of private pay and government-supported packages. You’re building a business that meets a fundamental, growing need.

The Verdict

National Insurance may have risen. Interest rates may still be high (for now). But none of these outweigh the facts:

• The UK economy is more stable and predictable than it’s been in years
• The health and social care sector is in growth mode, backed by policy, demographics and demand
• CareYourWay’s model has historically protected profitability when needed
• And as global investors reawaken to the UK’s potential, franchisees stand to benefit from long-term capital gains

This is a smart time to enter the market – not in spite of the changes, but because of them. The opportunity is real, the need is urgent, and with the right support, the rewards can be significant.

If you're considering building a business that changes lives, delivers financial independence, and stands strong through economic uncertainty – we're here to help.