Open Letter to the Chancellor: The Impact of Increased Employer National Insurance Contributions on Charities

An open letter has been sent to the Chancellor calling for urgent action on the planned increase to employer National Insurance Contributions (NICs) for the charity and voluntary sectors.

Reason for the Letter

The Chancellor’s autumn budget included changes that could have a devastating effect on the charity and voluntary sectors. It is estimated that the sector will face an additional £1.4 billion in costs per year due to the increase in employer NICs.

Charities are already under immense pressure, struggling to meet growing demand for their services, while facing rising costs and decreasing funding. The decision to increase employer NICs across the charity sector, without creating an exemption, will add significant strain on these already limited resources.

The letter, co-signed by 7,361 charities and voluntary organisations, has been issued by NCVO and ACEVO to raise concerns with the Chancellor. The CEO has added their signature to this call for action, alongside leaders from other organisations.

The increase in NICs would place further strain on the charity sector, which is already facing significant challenges in providing critical support to communities.