I have recently voiced significant concerns about the recent increase in National Insurance Contributions (NICs) and its negative impact on local charities in the area.
The National Insurance rise, which is set to increase costs for businesses and individuals, has raised alarm bells for many charitable organisations that already operate on tight budgets. Local charities play a critical role in supporting vulnerable communities, providing essential services such as food banks, mental health support, and assistance for the elderly. These organisations rely heavily on donations, grants, and volunteers, but with the increased financial strain from the NI rise, many fear they may be forced to reduce their services or even close their doors.
On Friday 13th December, I met with the Leicestershire and Rutland branch of Age UK where they told me that they are already grappling with the financial fallout from the COVID-19 pandemic and the rising cost of living. A director told me that “We’re going to have to cut services and make staff redundant” as the charity will now face a £430,000 deficit.
I am calling on the government to reconsider the NI rise’s impact on the charity sector and to provide targeted financial support for local charitable organisations that are vital to the community's well-being.
