National Insurance: Charity Sector

(Limited Text - Ministerial Extracts only)

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Monday 13th January 2025

(2 days, 10 hours ago)

Lords Chamber
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Baroness Twycross Portrait Baroness Twycross (Lab)
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I hope it is reassuring to the noble Baroness that the smallest charities and organisations should not see a rise in their national insurance contributions. If she has examples of citizens advice bureaux where they think this is not the case, I ask her to let me know. I am hugely aware of and in awe of the work that the citizens advice bureaux do in supporting some of our most vulnerable citizens.

Baroness Neville-Rolfe Portrait Baroness Neville-Rolfe (Con)
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My Lords, the increase in NICs is highly regressive and the very general impact note does not make that clear. It disproportionately affects charities employing those on lower incomes or working part-time and, unfortunately, the employment allowance barely scratches the surface of the problem that has been created. Does the Minister think it is right to target the lower-paid in this way through the NICs changes?

Baroness Twycross Portrait Baroness Twycross (Lab)
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My understanding of the NICs change is that it is about employer increases. This Government have not increased the tax paid by workers, including national insurance.