30 October 2024
‘Today’s budget included some positive signs for charities and, more importantly, the people charities serve. Investments in public services, an increase in the minimum wage, and the limits on Universal Credit debt repayments – these should reduce demand pressures on charities by improving people’s living standards.
But other measures may add further pressures on the sector’s finances. The increase in employer National Insurance contributions will disproportionately affect employers of lower-wage workers. Coupled with the rise in minimum wage, this will hit some charities hard.
And for charities reliant on government contracts, there’s no sign they will increase to match these new costs. We know that already charities subsidise the state by £2.4bn a year. If the Government doesn’t want charities that deliver vital services for many people to fold, then they will need to look at this.
NPC is pleased to see the extension of the UK Shared Prosperity Fund (albeit at a lower rate) and the social housing rent settlement. We hope that the significant real terms increase in NHS funding, and the more moderate increase in Local Authority budgets, will translate into better and more accessible services for those that need them.’
