We are deeply disappointed and frustrated at the lack of recognition of the devastating impact the increase in National Insurance Contributions (NICs), as announced in the UK Government’s budget, will have on charities like ours. We simply cannot sit back and take the hit.
This increase could force charities to make extremely difficult decisions – cutting services, reducing workforce, or both. Such cutbacks would not only harm the vulnerable individuals we support but also the NHS, which cannot deliver these services at the cost-efficiency we provide.
At Tenovus Cancer Care, we deliver essential services including counselling, nurse-led support, and benefits advice, free of charge exclusively to the NHS. More than 10% of people diagnosed with cancer in Wales will use one of these vital services. Sadly, a third of those we support are end-of-life, facing their most difficult days.
This additional financial burden, estimated at a minimum of a quarter of a million pounds annually, is equivalent to the cost of running our benefits advice service. In the last year, this service alone helped secure £4.1m worth of payments to 1,820 people with cancer.
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.
We are a substantial employer, with 228 staff working across our 56 shops, head office, and out in communities across Wales. This decision also risks harming the economy and the very communities we serve.
Despite the disproportionate impact of the pandemic and cost-of-living crisis on charities like ours, we received no bespoke support and were forced to make huge redundancies just to keep afloat. After working hard to recover and finally balance our budgets, being asked to absorb this increase now is such a bitter blow.
Therefore, we are calling for:
- The UK Government to reconsider the NIC increase for charities such as ours that provide direct support to the NHS from charitable funds and include us in exemptions, as has been done for public sector organisations.
- Welsh MPs to advocate for us in Westminster and appeal for urgent action to protect the vital services that people rely on.
- Welsh Government to mitigate the burden if UK exemptions are not forthcoming, acknowledging the services we deliver free of charge to patients across Wales.
