With rising costs on the horizon, Rachel Reeves’ recent budget has underscored the financial pressure on small business owners, including dental practices. Arguably, the most obvious changes affecting dental practices are:
- 1.2% increase in employer National Insurance Contributions (NICs)
- upcoming hike in the National Living Wage from April 2025.
These changes will likely lead to higher operating costs for dental practice owners, directly impacting overall profitability. So, to ensure your practice thrives in 2025, read more below about how we advise you to proactively cut costs and implement strategic financial planning, which are essential.
Why Budget Cuts Are Occurring
Reeves’ budget targets a £22 billion deficit in public finances, a goal that’s led to an emphasis on tax adjustments and rising business costs. From April 2025, dental practice owners must manage the increased expense from the 1.2% rise in employer NICs. Additionally, with the minimum wage set to increase to £12.21 per hour simultaneously, many dental practices will experience a sharp rise in payroll costs, particularly if they employ a larger team to serve a growing patient base. This additional wage burden could dent margins for practice owners already dealing with increased supply and utility costs. Consequently, practice owners must review current expenditures and identify areas where savings can be made without sacrificing quality patient care.
Potential Areas for Cost Reduction
Reassess Supplier Contracts
Regularly renegotiating with suppliers can lead to cost savings. At Patient Plan Direct, our costs are highly competitive compared to larger corporate dental plan providers, such as Denplan, Practice Plan and DPAS. Often, when their clients meet with us and discover the potential to retain more of their dental plan income when switching to Patient Plan Direct, we have seen those larger dental plan providers attempt to match our cost-effective admin fee. By requesting a Discovery call with us, we will accurately calculate how much you could save on admin fees. Or, check out our online savings tool to assess the potential cost savings your dental practice could make.
Streamlining Admin Costs
Unnecessary, laborious admin can be a hidden drain on resources. Implementing digital patient management and billing systems can automate many routine tasks, reducing paperwork and staff time. At Patient Plan Direct, our online portal is super easy to use, and we know from practice teams who have switched their dental plans to us from other providers that our online portal is unrivalled in its ease and efficiency (a huge time-saver)! Read more about it here.
Optimising Staffing Costs
Given the wage increases and NICs, reviewing staff schedules to optimise hours based on patient demand may be beneficial. Cross-training team members can also help maximise productivity, reducing the need for additional hires. Team members may be receptive to adjusting their hours and upskilling to enhance their roles.
Energy Efficiency Initiatives
Dental practices rely on energy-intensive equipment. Upgrading to energy-efficient alternatives could reduce monthly utility costs. Check out Greener Dentistry Global for more advice and support on creating a greener practice.
Dental Plans Can Support Financial Stability
Practice plans are invaluable for managing cash flow and offsetting rising costs. At Patient Plan Direct, we specialise in tailored dental plans that make private dental care more affordable while providing practices with a steady, predictable income stream. This approach also supports long-term financial planning amid rising wages and taxes. Once you calculate the impact of the April 2025 changes on your practice, consider whether an increase in dental plan fees might be appropriate if you already have plans. Many of our clients opt to increase their monthly dental plan fees annually.
Experienced Team with Financial Expertise
Our team understands the financial complexities of running a dental practice. At Patient Plan Direct, we work closely with practices to develop flexible plans catering to patient needs and the practice’s financial objectives. We aim to ensure that the practices we support remain profitable and competitive, even in challenging economic times.
We understand that while cost savings are essential, reliable support and service are equally important. Our clients benefit from a dedicated business development manager, and our client services team is on hand to assist you and the wider practice team every step of the way.
If you want to know more about us, we can connect you with clients who have successfully transitioned to Patient Plan Direct to give you confidence in what to expect—especially if you’re considering a switch due to declining customer service with your current provider (sometimes the reason to switch is not only about cost-saving). Watch and read testimonials from clients who have switched to Patient Plan Direct.
By leveraging cost-effective dental plans, your practice can anticipate the budget’s impact ahead of time, continue to grow, and remain profitable for the years ahead. Contact us to discuss the circumstances of your practice.