MP highlights £100,000 annual cost to air ambulance charity from NI contribution increase

The Liberal Democrat MP for Chelmsford, Marie Goldman, stated that an increase in employers’ National Insurance (NI) contributions is projected to incur an additional annual cost of £100,000 for an air ambulance charity. Addressing Parliament, Ms. Goldman revealed that the Essex and Herts Air Ambulance had reached out to her regarding the alterations unveiled in the previous month’s Budget. She urged the government to explore the possibility of exempting charitable organizations from these adjustments. In response, Commons leader Lucy Powell indicated that the government was examining methods to utilize additional funding allocated to the NHS to assist health charities. Ms. Goldman quoted, stating: “Earlier this week I received an email from Essex and Herts Air Ambulance, a registered charity that provides helicopter emergency medical services for the critically ill and injured of Essex, Hertfordshire and surrounding areas.” She continued, detailing that “In the last financial year alone they attended 2,635 missions. It costs in excess of £1m every month to keep the service operational and cover all charitable costs.” Goldman further added: “This would not be possible without the goodwill of people in Essex and Hertfordshire, but the recent changes to employers’ National Insurance would cost the charity an additional £100,000 per year.” She then inquired whether the leader of the Commons would contemplate initiating a debate on the matter to acknowledge the “vital, sometimes lifesaving, role that this sector plays in all of our communities.” Ms. Powell responded by stating that Health Secretary Wes Streeting was investigating how the increased funding for the NHS budget “can be used to support other health charities and health services.” She concluded, “There will be an update to this House soon.” Currently, businesses are required to pay a rate of 13.8% on employees’ earnings that exceed an annual threshold of £9,100. During the Budget announcement, Chancellor Rachel Reeves declared that this rate would rise to 15% by April 2025, while the threshold would be lowered to £5,000. The employment allowance, which enables companies to decrease their National Insurance liability, is set to increase from £5,000 to £10,500. Overall, Ms. Reeves stated that these modifications are projected to generate £25 billion annually by the conclusion of the Budget’s covered period.