Charity Warns National Insurance Increase Could Jeopardize Services

A charity supporting children with special educational needs and disabilities (Send) has stated that an increase in the National Insurance rate for employers could “break us”. Family Voice Peterborough (FVP) is advocating for charities to be exempt from this measure should it be implemented in the upcoming autumn budget. The budget is anticipated to include an announcement regarding an increase in the amount employers are required to contribute towards national insurance, intended to enhance funding for public services. The government asserts that its tax framework for charities ranks among the most generous globally. Ms Ravenscroft indicated that her organization might have to reduce its workforce and curtail its services. She stated, “If there’s no protection for us as a charity, it could break us, because we’re only just coping at the moment.” She added, “We’ve had to downsize the charity due to the cost of living, which is still affecting us.” Furthermore, she noted, “Our costs are rising, while at the same time the need for our services is also increasing.” The charity has already vacated its previous premises, the Goldhay Centre in Peterborough, as a result of escalating expenses. A spokesperson for HM Treasury commented, stating: “The UK is a world leader in the charitable sector. Our tax regime for charities, including exemptions from paying business rates, is among the most generous of anywhere in the world.” The spokesperson also added, “We do not comment on speculation around tax changes outside of fiscal events.” Ms Ravenscroft mentioned that a potential increase in fuel duty would further elevate its operational costs, given that the charity subsidizes some travel expenses for its staff. She expressed, “There’s no talk about any protection for charities in any of this.” Mandi Rennie, a trustee for FVP, reported that her 17-year-old son, who has ADHD, is worried about the organization’s future. She conveyed, “I think he’s worrying about where he is going to go for advice if the service does get cut.” Rennie elaborated, “He can always ask me but some of the questions are things he doesn’t want to ask me because I’m too close to him. He’d rather ask someone else; someone more detached.” Further details regarding the budget are scheduled to be disclosed at 12:30 GMT.