Charities express concern over National Insurance contribution increase

A hospice has stated that an increase in National Insurance (NI) employer contributions is projected to incur an annual cost of £300,000, leading to a “significant impact” on its services. St Margaret’s Hospice, located in Taunton, Somerset, is among several charities advocating for an exemption from the forthcoming increase, which was revealed in the previous week’s Budget. Keith Sinclair, Chief Executive of Brainwave, commented, “We have none of the mechanisms to mitigate against those increases and we can’t pass those costs on.” A government spokesperson, in a released statement, asserted that small charities have been safeguarded through the more than doubling of the Employment Allowance to £10,500. Brainwave provides specialist physiotherapy and speech therapy to children with disabilities and additional needs. Mr. Sinclair indicated that the charity anticipates an additional annual expenditure of £60,000 once the NI increases are implemented next April. He further stated, “All of our income is self-generated so we don’t receive any public funding.” “So an extra £60,000 on top of that is extremely challenging for us,” he added. He also remarked, “What it probably means is that organisations like ours aren’t going to be able to invest, and won’t be able to look at increases of our own people.” A government spokesperson reiterated in a statement: “We have taken tough decisions to fix the foundations so we can fund more NHS appointments, hire more teachers and build more affordable homes.” The spokesperson further elaborated: “We have protected small charities and businesses by more than doubling the Employment Allowance to £10,500, meaning more than half of them with NICs liabilities either gain or see no change next year.”