Job losses and service cuts will be “inevitable” at charities and community organisations due to upcoming rises in employers’ National Insurance costs, a body representing the voluntary sector has said.
In her October budget, UK Chancellor Rachel Reeves announced that employers would pay 15% towards their employees National Insurance costs from April next year, up from 13.8% currently.
Public sector organisations are protected from the rising employer costs, but those in private sector and the community and voluntary sector are not.
Northern Ireland Council for Voluntary Action (NICVA) chief executive Celine McStravick says charitable bodies here are facing increased annual bills of between £5,000 and £500,000.
“From April 2025 our payrolls will be increasing and we have absolutely no way of finding the income to cover that,” Ms McStravick said.
“Over three quarters of our members have told us that it will cost anything from £5,000 up to nearly £500,000 next year.
“The voluntary and community sector are stuck in the middle, providing really vital services and yet we have no way of covering those bills.
“It will inevitably mean redundancies, decreasing services, people’s hours being cut because there is no way you can make the money appear from nowhere.”
