National Insurance: Charity Sector

Baroness Neville-Rolfe Excerpts

Monday 13th January 2025 Lords Chamber

[Baroness Twycross (Lab)]

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 (Con)]

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 (Lab)]

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.