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ALLIANCE sign letter calling for action on third sector NICs

  • Area of Work: The ALLIANCE
  • Type: News Item
  • Published: 5th November 2024

Voluntary organisations are calling on the Chancellor to reimburse the costs of higher National Insurance Contributions.

Following the announcement in last week’s UK Budget that employer National Insurance Contributions (NICs) will increase from 13.8% to 15.0%, third sector organisations across the UK are calling for the Chancellor to ensure that support is provided to meet the additional costs.

The National Council for Voluntary Organisations (NCVO) and Association of Chief Executives of Voluntary Organisations (ACEVO), which represent third sector organisations in England, have drafted a letter to Chancellor of the Exchequer Rachel Reeves. It notes the difficult circumstances the sector has faced in recent years, which have led to service closures and reductions, even at a time when these services have been plugging the gaps left by austerity.

The letter calls for third sector organisations to be reimbursed for the cost of increased employer NICs, estimated to have a total cost of £1.4 billion. The Scottish Council for Voluntary Organisations have similarly outlined their concern about the impact of the increases, estimating a total impact in Scotland of £75 million. The Health and Social Care Alliance (the ALLIANCE) echo the concerns of these umbrella bodies, and has signed the NCVO/ACEVO letter to the Chancellor.

You can read and sign the letter on the NCVO’s website here.

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