Dementia Charity Projects £200,000 Increase in Running Costs Following Budget

An independent charity supporting individuals with dementia has stated that the government’s autumn Budget is projected to increase its operational expenses by £200,000 in the coming year. Sarah Marriott, who leads Alzheimer’s Support Wiltshire, indicated that while she aimed not to “scaremonger,” the organization might need to consider alternatives like raising service fees or reducing service scope. The charity clarified that modifications to employers’ national insurance contributions (NICs), in addition to an increase in the minimum wage, necessitated finding an additional £200,000. This comes on top of a £100,000 reduction in its commissioned contract received from Wiltshire Council. Chancellor Rachel Reeves stated that the government had made “a number of difficult but necessary decisions on tax, welfare and spending to fix the public finances.” Ms Marriott, for her part, has endorsed an open letter from the National Council for Voluntary Organisations (NCVO) addressed to the chancellor, advocating for increased financial assistance for charities, specifically requesting their exemption from the NICs increase, mirroring the treatment of public sector organizations. The charity reported that it provides assistance to approximately 2,500 individuals in Wiltshire, operating “on the frontline of social care, supporting some of the most vulnerable people in our communities.” It offers adaptable services for those living with all forms of dementia at home and their family caregivers, encompassing day care, in-home support, carers’ groups, and various activity groups. With a workforce of 150 individuals, Ms Marriott affirmed her “full support” for proper staff remuneration, yet acknowledged that wage increases affect charities. She reviewed the financial data and indicated that implementing the wage adjustment would require it to be applied universally to all staff. “It becomes increasingly difficult to find that money,” she stated, adding, “I don’t want to be scaremongering. A lot of people rely on us.” Ms Marriott expressed her desire to avoid staff reductions but noted that not refilling vacant positions was a possibility, despite staff already operating at full capacity. She further explained that given the role of numerous charities in addressing social care deficiencies, she hopes for government acknowledgment of this contribution. Responding to the NCVO’s open letter, the chancellor identified one of the “toughest decisions” made by the Labour government as increasing the employer NICs rate from 13.8% to 15%, concurrently lowering the per-employee threshold for employers to commence NICs payments. Ms Reeves stated: “You have asked if the government will provide further support to the voluntary sector by exempting or reimbursing the sector for the increase in employer NICs. “The government has committed to provide support for departments and other public sector employers for additional employer NICs costs only. “This is the usual approach the government takes to supporting the public sector with additional employer NICs costs, as was the case with the previous government’s Health and Social Care Levy.” She further added: “We remain committed to ensuring that the sector is recognised and valued for the crucial support it provides to so many people and look forward to continuing to work together.” Jane Davies, Wiltshire Council’s cabinet member for adult social care, commented: “We work closely with all our providers and we understand the challenges many are facing at this time.”Alzheimer’s Support Wiltshire are contracted to provide a range of services to our residents with no reduction to their funding. If there are any concerns, we are here to talk to our providers.”