Emmaus UK has expressed its “deep concern” over the impact an increase to employer National Insurance Contributions (NICs) could have on its ability to provide critical services.
The charity’s CEO has joined over 7,000 organisations in signing a joint open letter, written by the National Council for Voluntary Organisations (NCVO) and the Association of Chief Executives of Voluntary Organisations (ACEVO), expressing concerns about the impact of the move.
The letter warns the increase would cost the charity sector £1.4 billion and could impact vital services, including those delivered by Emmaus charities across the UK.
Charlotte Talbott, CEO at Emmaus UK, said:
“We are deeply concerned about the impact of increased employer National Insurance Contributions on the Emmaus federation of communities and groups across the UK, and hope urgent action will be taken so the funds we raise help those with experience of homelessness and poverty, in turn saving money for the NHS, housing and other key services.
“By signing the letter led by NCVO and ACEVO, alongside more than 7,000 other charities in response to the autumn budget statement, we hope to send a clear message to the chancellor about the devastating impact this rise will have across the voluntary sector.
“We urge the chancellor to commit to reimbursing voluntary organisations’ increased employer National Insurance Contributions, in the same way as for the public sector.”
The letter explains that charities are in a “dire situation” as they try and meet rising demand while funding continues to decline.
Charities in the UK employ almost one million people, meaning charities of all sizes will feel the impact of the employer NICs increase.
Explaining the impact on charities across the UK, the NCVO said:
“The chancellor’s autumn budget statement announced changes that could have a devastating impact on the charity and voluntary sectors.
“We estimate that the sector’s total increased cost of employer National Insurance Contributions (NICs) will be £1.4bn per year.
We’ve been clear that charities are already in a dire situation. Many are struggling to meet the soaring demand for their services while their costs escalate and funding declines.
“The decision to increase employer NICs across the charity sector, and not create an exemption, will be another major strain on their limited resources.”