Charity fears NI hike will hit support for clients

A grassroots mental health charity has said it may have to cut staffing in order to meet the upcoming increase in employer National Insurance contributions (NICs).

Scarborough Survivors works with up to 2,000 people every year, including Caitlin Culley, who said without the organisation wellbeing in the town would "go downhill".

The Chancellor, Rachel Reeves, increased the tax for employers in her budget last year and it comes into force on 6 April - meaning the rate of employers' NICs will increase from 13.8% to 15%.

Scarborough Survivors said that means they have to find an extra £20,000 a year to keep going, though the government said it supports charities with a "world-leading tax regime".

The people Scarborough Survivors support include those who are in a mental health crisis when they contact the charity.

Ms Culley said she had been suffering from suicidal thoughts when she sought their help.

"The Scarborough Survivors staff got me talking and I'm still here," she said.

"If the Survivors lose money, mental health in Scarborough will go downhill really badly."

Chief executive Andrea Woolcott said the increases in NICs mean the charity could have to make staff redundant or reduce their seven-days-a week service provision.

"If we do that, it reduces the amount of support we can provide," she said.

"It would negatively impact our clients' mental health, but would also impact the NHS, the police, and other organisations.

"That's because if our clients can't come to us, where would they go? Who would support them?"

Steve Lange said Scarborough Survivors is his "safe space," and that the National Insurance increases were "really unfair."

"Every penny the charity gets, it needs," he said.

Fellow service user Tracey Powell said: "When I'm feeling low or struggling they pull me back from what I've wanted to do.

"They say to me: 'You're not doing anything silly on my watch.'

"The charities should be exempt. They are a lifeline."

Scarborough-born Sarah Elliot, chief executive of the National Council for Voluntary Organisations (NCVO), believes charities should be exempt from National Insurance costs.

Her organisation wrote to the Chancellor, urging her to reconsider her decision - but Reeves replied without agreeing to do so.

In her response, the Chancellor said changes to allowances meant more than half of businesses - including charities - which pay National Insurance would either gain or see no change next year.

Reeves also said the government provided support to charities through a range of reliefs and exemptions, including reliefs for charitable giving.

A government spokesman added: "We support our charities through a world-leading tax regime which provided £6bn in relief for the sector last year alone, including exemptions from paying business rates."

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