Disability charities across the UK have raised alarms over 'life-changing consequences' stemming from the government's decision to increase employers’ national insurance contributions (NICs) and raise the national minimum wage, impacting over one million vulnerable children and adults.

The Voluntary Organisations Disability Group (VODG), representing 100 charities including Mencap and Sense, criticized the decision by Chancellor Rachel Reeves, stating it could threaten the sustainability of numerous local services.

The announced tax changes, alongside rising operational costs, could lead to staff reductions and services being handed back to local authorities as they struggle to operate safely within constrained budgets.

Parallel concerns from nursery providers, including the Early Years Alliance (EYA), forecast increased fees and potential closures, further straining the social care and education sectors.

More than 7,000 charities affiliated with the National Council for Voluntary Organisations have signed a letter urging the government to reconsider these financial burdens, highlighting dire prospects for the sector.

A possible exemption for hospices provides a glimmer of hope.

In contrast, many homelessness charities warn of a significant financial shortfall affecting services such as emergency housing.

The government's plan includes bolstering health and social care with significant funding, yet charities argue that the financial relief measures do not adequately address the escalating challenges faced by the sector.