ALLIANCE member survey highlights third sector fears on employer National Insurance Contributions
- Area of Work: The ALLIANCE
- Type: News Item
- Published: 13th December 2024

A survey of ALLIANCE members found significant concerns regarding financial stability, service provision, and employees.
A snapshot survey of Health and Social Care Alliance Scotland (the ALLIANCE) membership has found serious concerns about the impacts of proposed increases to employer National Insurance Contributions (NICs). As part of the budget announced in October, the Chancellor set out her plans to increase employer NICs from 13.8% to 15.0%. Data from the Scottish Council for Voluntary Organisations (SCVO) estimates that this will cost third sector organisations in Scotland £75 million next year.
The ALLIANCE have previously joined third sector organisations across the UK to highlight the serious risks this decision entails, including through signing a joint letter to the Chancellor led by NCVO and ACEVO. In late November, we ran a short survey aimed at our organisational members, seeking their views on increased NICs.
Of those responding, 85% said they were concerned about the additional NICs costs. When asked to think about the impacts on a range of areas:
- 62% said they thought they would have to cut back services, with 22% saying this would affect them a lot,
- 82% said their financial stability would be impacted, 34% saying a lot,
- 44% worried that they would have to cut employee salaries, with half that number saying a lot,
- 58% felt they may have to reduce their number of employees, with 14% saying by a lot,
- and 71% believed it would impact on their ability to recruit and retain employees, with 29% saying this would impact them a lot.
However, only a minority of respondents (29%) said they were concerned they may have to withdraw from public service delivery. Meanwhile 17% said they weren’t sure whether they would have to cease operations, alongside 3% who feared they would, reflecting a significant degree of uncertainty within the third sector.
Amongst the comments submitted by members, many explicitly called for third sector organisations to be made exempt from the increase. For example one respondent said this, noting as well that the third sector is already struggling to compete with other sectors for staff:
“Relief for third sector / charitable organisations would greatly help us. We are already well behind comparable private and public sector salaries when benchmarking similar roles across organisations.”
Another suggested that additional costs should be added to the grants from public sector funders going forward:
“For all funders, whether it is the local authority, HSCP, NHS or independent grant funders, to add this additional cost onto our budgets going forward. This should be passed from them to us via government additional funding or the alternative would be for charities to be exempt from paying this additional National Insurance.”
The ALLIANCE have also written to all 57 Scottish MPs, asking them to show their support for the third sector by calling on the UK Government to commit to fully reimbursing third sector organisations for the additional NICs costs. You can read our letter to MPs via the link below.
End of page.
You may also like:
The iMPROVE COP Core Group is seeking two patient representatives from Scotland
Continue readingThe ALLIANCE supports roundtable with the Minister for Public Health.
Continue readingChildren's Health Scotland wants to understand what health and health rights look like for children, young people and families in 2026
Continue readingRespond to Children's Health Scotland's largest National Health Rights Survey before 8 June.
Continue readingThe ALLIANCE hosted a workshop at the SCVO Gathering to explore how we can better navigate difficult decisions.
Continue readingRead about SIAA's manifesto calling on all parties to invest in independent advocacy so that everyone in Scotland can have their voice heard
Continue readingThe refreshed guidance continues to put people at the heart of decision‑making.
Continue readingThe latest set of themes focus on putting straightforward principles into practice
Continue readingThe Scottish Diabetic eye screening programme checks for diabetic retinopathy - when diabetes causes Visual Impairment
Continue readingTwo key Peppa Pig episodes to air on TV in March 2026
Continue readingLet the British Society of Audiology know about your activities for marking the largest global awareness campaign on hearing loss
Continue readingRead manifestos from organisations representing Deafness, Deafblindness and Vision Impairment in Scotland
Continue readingLearn more about the UK’s biggest collection of eye health and sight loss data
Continue readingExplore this new resource and learn about cochlear implants
Continue readingNational Usher Syndrome Helpline launched to provide one-stop support
Continue readingChallenges won't be overcome without cross-sector collaboration that keeps people at the centre.
Continue readingA new support network is here to help people with FND connect and share experiences.
Continue readingShowcasing organisations across Scotland who are taking steps to embed a children’s human rights approach in their work.
Continue reading#TryAToolTuesday raises awareness of free and trusted apps and resources that help people improve and manage their health and wellbeing.
Continue readingTickets available now for workshops from HSTAR Scotland taking place in February and March.
Continue readingMarie Curie has published new analysis showing that almost one in three people in Scotland die without the palliative care they need.
Continue readingNew guides created for trans and non-binary young people
Continue readingThe ALLIANCE manifesto for the 2026 Scottish Parliament Election sets out a positive vision for the next five years.
Continue readingDelivered in partnership with Lingo Flamingo and the Open University.
Continue readingNational Usher Syndrome Helpline launched to provide support for people with Usher syndrome (most common genetic cause of deafblindness)
Continue reading