NICs Rise Threatens Vital Charity Services
Charities Warn of Closure Risks Due to Tax Increase
Charities across England are warning of potential cuts and closures following the rise in employers' national insurance contributions (NICs) announced in the budget.
Unlike NHS and councils, charities are not exempt from the tax increase, which they claim could bring 'existential' financial pressures.
The charity sector, which supports vulnerable groups such as adults with learning disabilities and severe physical disabilities, faces the threat of a financial crisis if the increase takes effect without exemptions.
The Liberal Democrat leader, Ed Davey, and Labour's Rachael Maskell urge for exemptions for social care providers and GPs.
The crisis highlights the budget's prioritization of the NHS, which received £22.6 billion, over social care, which only gained £600 million for councils.
The charity sector employs a million people and is responsible for delivering around £17 billion in services annually, including social care, health, and hospice care.
Now, they face an added £1.4 billion cost due to the NICs rise.
Sarah Elliott of the National Council for Voluntary Organisations termed it the biggest shock since the pandemic.
With fears of reverting to minimal service levels, charities express concerns over maintaining quality care and important services.
Charity leaders call for immediate action to address the funding shortfall, while the government plans further details on funding allocations next year.
Unlike NHS and councils, charities are not exempt from the tax increase, which they claim could bring 'existential' financial pressures.
The charity sector, which supports vulnerable groups such as adults with learning disabilities and severe physical disabilities, faces the threat of a financial crisis if the increase takes effect without exemptions.
The Liberal Democrat leader, Ed Davey, and Labour's Rachael Maskell urge for exemptions for social care providers and GPs.
The crisis highlights the budget's prioritization of the NHS, which received £22.6 billion, over social care, which only gained £600 million for councils.
The charity sector employs a million people and is responsible for delivering around £17 billion in services annually, including social care, health, and hospice care.
Now, they face an added £1.4 billion cost due to the NICs rise.
Sarah Elliott of the National Council for Voluntary Organisations termed it the biggest shock since the pandemic.
With fears of reverting to minimal service levels, charities express concerns over maintaining quality care and important services.
Charity leaders call for immediate action to address the funding shortfall, while the government plans further details on funding allocations next year.
