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Mon 14 Apr 2025

Calls to exempt charities supporting the NHS from tax hikes

We at Tenovus Cancer Care are calling for urgent action to ensure fairness for all charities supporting the NHS, following the UK Government’s recent changes to National Insurance Contributions (NIC) and the National Living Wage.

From 6 April 2025, Employers’ NICs rose from 13.8% to 15%. While some public sector bodies and health-related organisations are exempt from the hike, charities across Wales – including us – are not. We now face an estimated £650,000 increase in annual costs, threatening our ability to sustain vital services.

It is a misconception that all charities are cushioned by government grants or contracts. For many, including us, operations rely almost entirely on charitable donations. While we absolutely want to pay our staff fairly and anticipated the living wage increases, the scale of this NIC rise is unsustainable in the context of a challenging fundraising environment.

After the recent changes imposed by the UK Government, we called on the Welsh Government to acknowledge and support the third sector’s crucial role. Despite assurances of increased support for third-sector organisations, we do not qualify for this assistance and will receive no additional funding.”

Judi Rhys MBE, Chief Executive of Tenovus Cancer Care

We support over 2,500 people affected by cancer in Wales each year, providing services free of charge to patients, families, and NHS partners. These include a Nurse-led Support Line, Counselling, and Benefits Advice with more than 10% of people diagnosed with cancer in Wales using our services.

We welcome the commitment by Welsh Government to support hospices in absorbing rising costs. However, this support must be extended to all charities delivering services which support the NHS.

Without parity across the sector, there is a real risk that essential services will be lost, placing more pressure on an already stretched NHS.”

Despite increasing financial pressures, we remain committed to our statutory partners and continues to invest in vital infrastructure, including data security and bilingual service delivery. 

However, these efforts are entirely funded through charitable donations, making any additional financial pressures even more challenging.

We urge Welsh Government to monitor the impact of these changes on the sector and to advocate with UK Government colleagues for fairer treatment of all health-supporting charities.

We must safeguard the essential services that so many people affected by cancer in Wales rely on.”

If you or someone you love has been affected by cancer, our free Support Line is there for you. Just call 0808 808 1010