Employer National Insurance Contributions: Charities

Victoria Collins Excerpts
Tuesday 7th January 2025

(2 days, 20 hours ago)

Westminster Hall
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Victoria Collins Portrait Victoria Collins (Harpenden and Berkhamsted) (LD)
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It is a pleasure to serve under your chairmanship, Ms Vaz, and I congratulate the hon. Member for Isle of Wight East (Joe Robertson) on securing this debate. The Government’s proposed changes pose a severe threat to vital charities at the heart of our communities. Again and again, we have heard that. Age UK in Hertfordshire has calculated that the rises will impose an additional cost of £85,000 per annum and, when combined with unexpected increases in operational costs, they have pushed its total cost increases close to £250,000.

Higher national insurance contributions mean increased costs, reduced capacity to hire and retain staff, and ultimately fewer resources to deliver the services our communities rely on. The wonderful team at the Hospice of Saint Francis in Berkhamsted shared with me the heartbreaking experience of having to turn away people from their health and wellbeing service, their nursing support and their at-home support.

The situation will only get worse. Time and again, charities have spoken to me about how the Government’s snap decision undervalues their essential work, such as supporting covid-19 vaccine roll-out, picking up the pieces after the winter fuel allowance was cut and filling the gaps left by the last Conservative Government. With our NHS and public service in crisis, I urge the Government to reconsider these national insurance rises for charities.