In last October’s Budget, Chancellor Rachel Reeves MP announced several changes to National Insurance contributions paid by employers, increasing the rate from 13.8% to 15%, effective from April 6. This announcement was accompanied by an increase in the National Living Wage.
Local impact
The bottom line is that groups and organisations in the VCFSE sector across North Herts and Stevenage will be financially impacted by these measures. This week, our CEO, Hannah Morgan-Gray, and Community Capacity Builder, Andy Nazer, met with Alistair Strathern MP for Hitchin to discuss this action upon our members and to lobby for an exemption. Alistair acknowledged the significant work being done by the sector and expressed sympathy for our situation. However, as we are all aware, the government has had to make difficult decisions, and this is one of them.
“It was good to meet with Hannah and Andy to discuss the challenges facing our local charity sector. Our charities and volunteers are the heartbeat of our local communities, providing invaluable support to residents right across our towns and villages. I'll be doing all that I can to support them to continue their vital work." - Alistair Strathern MP for Hitchin
Upcoming Civil Society Covenant Refresh
We also discussed the government's expected launch of a refreshed Civil Society Covenant later this year. This agreement will cover the relationship between government and civil society, aiming to foster better partnership working and accountability between the two. We asked Alistair if he would engage with this initiative and reflect on his experiences working with VCFSE groups in the area.
Stop press: Civil Society recently reported that Members of the House of Lords have voted in favour of exempting smaller charities (those with an income of less than £1 million) from the upcoming increase to National Insurance contributions. The bill will proceed to a third reading in the House of Lords later this month. So, there is still hope!
