Context
Gables, an animal rescue charity in Rebecca Smith's constituency, and the Devon Mental Health Alliance have reported negative impacts due to the increase in employers' national insurance contributions. For Gables, this is a £22,000 cost increase.
Question
Gables, an animal rescue charity in my constituency that I met before Christmas, and the Devon Mental Health Alliance have shared the negative impacts the increase to employers’ national insurance contributions will have on their service delivery. For Gables, it is a £22,000 increase to its costs. For DMHA, decreases the amount of services it can provide, which are needed to ease local NHS pressures. What hope can the Secretary of State offer them for the future?
Answer from The Secretary of State for Culture, Media and Sport (Lisa Nandy)
I reassure the hon. Member that the Government work closely with the charity sector. Only a few months ago, the Prime Minister threw open the doors of Downing Street to launch a new covenant with civil society to work hand in hand with them on the shared challenges we face. We are aware of the impact of the changes on charities. That is why we have more than doubled the employment allowance from £5,000 to £10,500 to protect the smallest charities, and we published an impact assessment alongside the autumn Budget process that sets out the impact on charities. We will continue to work closely with charities to support them.
Not addressed: The Secretary of State did not provide specific financial relief or immediate steps for Gables and other affected charities beyond doubling employment allowance.
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