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:
Minister announces parts of the National Care Service Bill will be dropped due to a lack of compromise and support.
Continue readingThe Open University is looking for respondents to their survey exploring the gender pain gap.
Continue readingThe Scotland Reducing Gambling Harm programme informed a Systems Map to understand local experiences of gambling harm.
Continue readingThe paper is the result of feedback highlighting this as an important yet under-explored area.
Continue readingAre you aged 55+, living in the UK, and interested in supporting new research?
Continue readingDisability Information Scotland offer training courses designed to help you ensure your online information is accessible to everyone.
Continue readingThis year’s campaign is ‘get comfortable and start talking about mental health’.
Continue readingWe have submitted a parallel report to the UN Committee on Economic, Social and Cultural Rights for its examination of rights in the UK.
Continue readingThe ALLIANCE welcome the aims of widening access to palliative care, but actions must be underpinned by resources and accountability.
Continue readingGWT have a new package of support available for people interested in or involved in delivering intergenerational work with school pupils.
Continue readingALLIANCE Members came together to connect, share experience, and discuss key issues facing those with learning disabilities across Scotland.
Continue readingAutistic Knowledge Development and National Autistic Society Scotland celebrate the success of the Embrace Autism programme.
Continue readingThe ALLIANCE wants to hear from you if you have experienced barriers to accessing Self-Directed Support.
Continue readingOur annual conference, titled 'Our Voices Matter, will be held on 30 April 2025 at the Radisson Blu, Glasgow.
Continue readingThis gives the first high-level understanding of progress towards the promise made to Scotland's care experienced children and young people.
Continue readingEvery Tuesday the Discover Digital team at the ALLIANCE shares a free and trusted digital tool that supports health and wellbeing.
Continue readingThe Academy has continued to raise awareness of the conditions necessary for long term, meaningful and sustainable change.
Continue reading2024 was another successful year for the Self Management Programme.
Continue readingRead about the Pension Age Disability Payment and upcoming stakeholder events.
Continue readingThe ALISS programme has continued to grow and develop over 2024.
Continue readingThe membership team has sought to review, renew, and refresh the ALLIANCE membership experience.
Continue readingThe programme has positively impacted digital inclusion by improving people's access to digital tools and services.
Continue readingThe First Minister has reiterated his commitment to the continuation of Contact Scotland BSL.
Continue readingWe continue to build strong relationships, champion integrated ways of working, sharing learning and highlighting lived experience.
Continue readingThe Scottish Sensory Hub has worked to raise sensory awareness and influence systems change, grounded in lived experience.
Continue reading