Employer National Insurance Contributions: Charities

Sorcha Eastwood Excerpts

Tuesday 7th January 2025 Westminster Hall

[Joe Robertson]

I agree. Putting pressure on other health providers and social care providers inevitably leads to pressure on the NHS. My hon. Friend hits the nail on the head in her comments and I thank her for them.

For Carers Trust the cost of this rise is £3 million—that is not its tax bill; that is just the bill from this rise in the Budget. For Stroke Association it is £2.1 million over two years, and for Teenage Cancer Trust it is £300,000. It is not just about health and social care charities, but charities tackling poverty and homelessness. The Labour Government say it is their aim, and it was in their manifesto that they would develop a new cross-party strategy

“to put Britain back on track to ending homelessness”.

What good is a strategy when it is stripping £60 million from charities trying to do what the Government want them to do? The homelessness charity Crisis says the rise will cost an additional £750,000 and—here is the point—with little or no time to prepare. That announcement was made just a few months before the effects will kick in, and Crisis says it is likely to lead to a reduction in frontline services.

I will mention a few other charities. The changes will cost Single Homeless Project £650,000. Rick Henderson, the CEO of Homeless Link, says—his words, not mine—that they are “desperately worried” about closures of homelessness services, leaving thousands without support, and that this NI increase

“could be the final nail in the coffin.”

Those are not my words, or the words of politicians, but the words of charity leaders up and down the United Kingdom.

The change affects charities supporting other vulnerable people, as well as charities supporting women and girls. Labour pledged in its manifesto to halve violence against women and girls, but chief executives of seven charities, including Victim Support and Rape Crisis, have warned the rise could result in their losing staff, closing waiting lists and ultimately closing the doors to some vulnerable victims of crime. That is the result of this Budget national insurance rise.

[Sorcha Eastwood (Lagan Valley) (Alliance)]

I thank the hon. Member for bringing forward this issue. I agree with him completely in so far as violence against women and girls in Northern Ireland is at crisis levels. It is one of the most dangerous places in Europe to be a woman, and we have women and girls who have lost their lives already this year to violence. Would the hon. Member agree that if the Government are serious—as I believe they are—about tackling violence against women and girls, surely this increase flies in the face of everything we are trying to achieve in terms of ending violence against women and girls?

[Joe Robertson]

I agree, and would like to share the hon. Member’s optimism that the Government do intend to make improvements in this area. This debate is a second chance for them to go away, then come back and provide relief to all charities, but particularly those that are operating in what might be called emergency services, because nobody else is doing what those charities are doing. Earlier today I spoke to a journalist who was involved in reporting the criminality and repulsive scandal in Rotherham. He said that when he went there, it was charities that were providing those emergency services—no one else was doing it—yet those are the groups that are having money taken off them in order to fund the Government.

Women’s Aid is a conglomerate representing 175 member organisations across England. It says that the national insurance contribution rises will effectively negate gift aid. The Government are giving a tax relief through gift aid and then taking it back through the Budget NIC rises.