Employer National Insurance Contributions: Charities

Vikki Slade Excerpts

Tuesday 7th January 2025 Westminster Hall

[Vikki Slade (Mid Dorset and North Poole) (LD)]

It is a pleasure to serve under your chairmanship, Ms Vaz. There are 328 charities in my constituency of Mid Dorset and North Poole, including Safe Partnership, which is run out of Wareham. It installs safe rooms and secures properties for people who have been victims of domestic abuse. Not one of those people has to pay for that service; it is paid for by councils that of course are not going to be funding the additional cost of those commissioned services. In Bournemouth, Christchurch and Poole alone, the cost of the additional employers NICs for the commissioned services in children’s and adult care is £5.5 million. Becky, who runs Windward Day Services in my constituency, said:

“The feeling in adult social care is bleak. The people we support do not deserve to…be the ones who receive lower quality…services through…no fault of their own.”

Mark Powell is chief executive of Diverse Abilities Plus, and the charity is to celebrate its 70th birthday this year. Phyllis Edwards, who founded it, wanted to protect children with disabilities, but Mark is concerned that it will not make its 70th birthday.

--- Later in debate ---

[Stephanie Peacock]

I appreciate that point. The bottom line is that we have been very clear that we want economic stability, and the money does have to come from somewhere—it is tax, borrowing or cuts. That is a very clear choice. Members will appreciate that many of the issues raised in this debate fall outside of my Department, but I will reflect the points made from across the House to the relevant Departments after the debate.

The Government will continue to support the sector in a number of other ways. Through the tax system, the Government also provide support to charities through a range of reliefs and exemptions, including reliefs for charitable giving. The tax reliefs available to charities are a vital element in supporting charitable causes across the UK, with more than £6 billion in charitable reliefs provided to charities, community sports clubs and their donors in 2023-24.

[Vikki Slade]

Will the Minister give way?

[Stephanie Peacock]

I have taken a number of interventions, so in the interests of time, I will make some progress.

The biggest individual reliefs provided are gift aid, at £1.6 billion, and business rates relief, at nearly £2.4 billion. My Department also supports the voluntary and community sector, particularly through the delivery of direct grant funding—delivering, among other things, the £26 million voluntary, community and social enterprise energy efficiency scheme, which helps organisations with capital energy efficiency measures. That is still under way, as is the social enterprise boost fund, which delivers grants and peer support for emerging social enterprises, and the Know Your Neighbourhood fund, which is focused on increasing volunteering and tackling loneliness.

Alongside that, the Department for Culture, Media and Sport sponsors the National Lottery Community Fund, which is the largest non-Government funder of voluntary and community organisations across the UK. During 2023-24, the National Lottery Community Fund made grant awards totalling over £900 million, 84% of which were under £10,000, with the majority supporting grassroots organisations.

My Department is also focused on developing other sources of funding support for the sector. That includes establishing a stronger, more ambitious partnership with the impact economy, such as by unlocking the multimillion-pound potential of the dormant assets scheme. This includes making charitable giving as easy and compelling as possible, building on the estimated £13.9 billion that the UK public donated to charity last year. My officials are also working to deliver the VCSE contract readiness programme to help to improve the capability of VCSE organisations when bidding for public contracts.

As we have heard from Members across the House, the voluntary and community sector plays an important role across all areas of public life, up and down the country. As the Minister for Civil Society, I have seen at first hand the work that charities and social enterprises do. Since being appointed, I have held a number of visits, meetings and roundtables with charities and voluntary organisations across the UK—from Leeds to Stoke, from Huntingdon to Brent. I am committed to continuing that engagement with charities and voluntary groups up and down the country, especially as we continue to develop a framework for the new civil society covenant, which will reset the relationship between civil society and Government.

We have heard a number of examples today of the brilliant work that charities and volunteers do. I thank them for their work and I thank hon. Members for their contributions today.