NI rise creates massive hole - disability charity

A charity for disabled adults has said it will be nearly a quarter of a million pounds worse off because of changes to employer national insurance contributions (NICs).

The Papworth Trust has joined more than 7,000 other charities in signing an open letter to the chancellor asking that the voluntary sector be exempt from the NIC rise.

The government said the NIC changes would raise an additional £25bn a year.

But the trust, based in Huntingdon in Cambridgeshire, argued it was "unfair" and was creating "a massive hole" in its funds.

The Papworth Trust supports disabled and older people with their care needs, leisure and learning activities and helping them find work and training.

It also offers services in Abington in Northamptonshire, Basildon in Essex, Cambridge and Ipswich.

The organisation welcomed the government announcement to invest in local councils, special educational needs and disabilities provision and housing.

But come April 2025, it will have to pay an extra £235,000 towards the NICs of its 238 employees.

During the last financial year, the trust's income was about £15m.

Chief executive Sarah Miller said the NIC increase could affect her team's ability to help companies recruit and retain disabled employees.

It may also impact the charity's shop, where disabled people can learn how to refurbish and sell bicycles.

"Charities continue to be squeezed and this is another squeeze."

The trust said it hoped no-one would be made unemployed as a result, and would look at how it could operate more efficiently.

Ms Miller said their work helped takes pressure off the NHS.

"If people have that sense of value, that wellbeing, then it is preventing a longer term impact on other services such as the health service," she said.

"We all understand that additional monies have to be found, but not from [this sector]."

Mia, 21, has learning disabilities and comes to a day centre run by the trust where she gets to bake cakes.

"I like to see all the people here. They're fun and they are funny."

The Labour MP for Cambridge, Daniel Zeichner, told the BBC "I sympathise with charities" but said tough choices have had to be made because the country was facing a £22bn "black hole".

He argued some smaller charities would be better off because the employers' allowance - which allows smaller companies to reduce their NI liability - was increasing from £5,000 to £10,500.

He said changing employers' NIC was a better plan than "plunging back into austerity".

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