← Back to Westminster Hall Debates
Employer National Insurance Contributions: Charities
07 January 2025
Lead MP
Joe Robertson
Isle of Wight East
Con
Responding Minister
Stephanie Peacock
Tags
EconomyTaxationHousingEmployment
Word Count: 9576
Other Contributors: 25
At a Glance
Joe Robertson raised concerns about employer national insurance contributions: charities in Westminster Hall. A government minister responded.
Key Requests to Government:
Joe Robertson asks the Government to rethink these national insurance changes and considers exempting all charities from such contributions or at least focusing on health and social care provider charities.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The rise in national insurance contributions for employers and the reduction of the threshold from £9,100 to £5,000 has affected charities significantly. Charities deliver nearly £17 billion worth of public services annually and are essential in supporting local government responsibilities. Sarah Elliott, CEO of NCVO, highlighted that this change represents a major shock for the sector since the pandemic, leading to potential drastic service cuts due to an additional cost of £1.4 billion.
Abtisam Mohamed
Lab
Sheffield Central
The former chief executive of a community regeneration organisation speaks on the direct impact of cuts on local charities and welcomes the Government's commitment to resetting relationships with the third sector, although concerned about the national insurance increase.
Mid Sussex
In West Sussex and Brighton and Hove, Age UK faces doubling its fundraising target due to combined cost increases from changes in NICs and cuts to winter fuel payment. Alison Bennett argues that this goes against the sentiment of prioritising NHS funds.
Blake Stephenson
Con
Mid Bedfordshire
The MP highlights the impact of increased staffing costs on charities such as The Greensand Trust in Mid Bedfordshire and expresses concern about staff cuts that may be necessary due to financial constraints.
Clive Jones
LD
Wokingham
Charities like The Cowshed and First Days have been disadvantaged by national insurance charges. Clive asks if the Minister is content with putting bankers’ bonuses first instead of support for people facing evictions, homelessness.
West Dorset
Weldmar Hospicecare will have to raise an additional £600,000 next year, while Julia’s House faces nearly £250,000 in additional costs. These charities provide care in the community and alleviate pressure on NHS.
Graham Stuart
Con
Beverley and Holderness
Charities are essential in supporting vulnerable groups, such as users of Citizens Advice. Graham Stuart advocates for the Government to reconsider its stance on employers' NI contributions affecting charities. Asked the Minister if it would be worth reviewing NI changes if they cost more than expected for NHS.
Helen Grant
Con
Maidstone and Malling
The Heart of Kent hospice faces costs of more than £200,000 per annum due to changes in NICs and the national living wage. Helen Grant argues that this undermines vital services and puts pressure on the NHS.
Jack Rankin
Con
Windsor
Raises concerns about charities like Thames Valley Air Ambulance and Thames Hospice that face substantial additional costs, questioning whether the Government's actions are accidental or a misunderstanding of how these organisations function.
Jim Shannon
DUP
Strangford
In Northern Ireland, charities will face costs ranging from £5,000 to £200,000 annually due to the NI changes. Jim Shannon agrees that charities are crucial for local communities and could collapse under this new financial strain.
Joe Robertson
SNP
Dunfermline and West Fife
Thanked the Minister for addressing arguments made in the debate and urged her to make strong representations to the Chancellor, suggesting that money taken from charities could be returned.
John Milne
SNP
North East Fife
Age UK estimates that £150,000 per year will be required for Horsham constituency to cope with changes and the extra charge. John Milne argues that this is the wrong time for such a measure given one in five pensioners are living in poverty.
Lee Dillon
LD
Newbury
Criticizes the lack of impact assessments before implementing changes, citing West Berkshire Mencap and Volunteer Centre West Berkshire as examples of organisations struggling to meet new financial demands.
Patrick Hurley
Lab
Southport
Discusses the economic legacy of previous policies, arguing that while the current Government did not raise taxes on working people as promised, it is failing to address systemic issues in services like social care and healthcare. Pressed the Minister on the clarity around public service cuts to fund tax cuts proposed by the Conservative party.
Peter Fortune
Con
Bromley and Biggin Hill
Speaks about the impact on local charities such as South East London Mind and Aurora Nexus, which face significant increases in tax bills that could reduce service provision.
Honiton and Sidmouth
The MP agrees that national insurance needs prioritisation for hospices to provide proper investment in palliative care, as stated in the Terminally Ill Adults (End of Life) Bill.
Saqib Bhatti
Con
Meriden and Solihull East
Raises concerns about the impact of increased national insurance contributions on local charities, citing examples from his constituency. Warns that over £1 billion a year could be lost to the charity sector due to this policy.
Sarah Dyke
LD
Glastonbury and Somerton
The Balsam Centre in Wincanton will face an additional £40,000 cost next year due to the NI changes. Sarah Dyke supports Joe Robertson's position that charities are vital for public service delivery.
Seamus Logan
SNP
Aberdeenshire North and Moray East
Addresses Scotland-specific concerns, noting the Scottish Government's estimate of additional costs at £750 million compared to offered support of £300 million. Inquired about where the Government is obtaining resources to fill public finance gaps.
Shockat Adam
Ind
Leicester South
Highlights the urgent need for exemptions or additional funds for charities such as Jasmine House and Vista, which are facing closure due to increased costs from national insurance changes.
Roger Gale
Con
Herne Bay and Sandwich
Money donated to charities such as Shooting Star and Demelza House should not be siphoned off to the Treasury. Sir Roger Gale calls for an exemption from NI contributions for all charitable organisations. Sought clarification on whether the extension of children’s hospices grant meets NI costs for such institutions.
Sorcha Eastwood
Alliance
Lagan Valley
In Northern Ireland, violence against women and girls is at crisis levels, with charities warning about potential closures of services due to budget cuts. Sorcha Eastwood questions the Government’s commitment to halving violence against women and girls.
Tom Gordon
LD
Harrogate and Knaresborough
Unpaid carers face an additional £90,000 in NICs. Harrogate's police treatment centre faces £160,000 of employer NICs next year.
Harpenden and Berkhamsted
Age UK in Hertfordshire faces an additional cost of £85,000 per annum. The Hospice of Saint Francis had to turn away people from its health and wellbeing services due to increased costs.
North East Fife
The MP supports Joe Robertson's private Member’s Bill, the Gambling Act 2005 (Monetary Limits for Lotteries) Bill, which would remove the charity lotteries cap to allow charities to raise more money without costing taxpayers.
Wendy Morton
Con
Aldridge-Brownhills
The Midlands Air Ambulance Charity, which receives no Government funding, should be given the same exemption as NHS trusts for daily missions. Wendy Morton suggests that charities like air ambulances deserve similar consideration.
Government Response
Stephanie Peacock
The Parliamentary Under-Secretary of State for Culture, Media and Sport
Government Response
Discussed measures taken in autumn Budget to protect small businesses and charities, such as doubling employment allowance from £5,000 to £10,500. Acknowledged financial pressures on voluntary organisations due to state cuts over past years but stressed need for tough decisions for economic stability. Mentioned specific funding boosts of £100 million for hospices and £26 million for children’s hospices. Highlighted further support through social care grant increase (£880 million) and homelessness funding (an additional £233 million). Discussed major reliefs provided by her Department such as gift aid and business rates relief. Mentioned funding support through various schemes like the VCSE energy efficiency scheme, social enterprise boost fund, and Know Your Neighbourhood fund. Highlighted the role of the National Lottery Community Fund in supporting voluntary organisations with grant awards totalling over £900 million. Emphasised ongoing engagement with charities and voluntary groups across the UK.
▸
Assessment & feedback
Summary accuracy
About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.