Across Wales, charities, not-for-profits, and voluntary organisations play an absolutely crucial role in delivering the public services that the most vulnerable in society depend upon.
Labour’s cruel decision to increase employer national insurance contributions will have a detrimental impact on the future of Welsh charities, not-for-profits and voluntary organisations.
It is clear that the UK Labour Government’s plans to increase employer’s National Insurance will hit Welsh charities, not for profits and voluntary organisations hard. Although these groups often win contracts from organisations such as local authorities – and provide important services – they won’t be reimbursed for the rise in NI contributions, unlike public sector organisations such as the NHS and councils themselves.
Furthermore, 84% of the organisations the Welsh Council for Voluntary Action surveyed told them they were concerned about their ability to afford the rise in employer national insurance contributions.
In the Senedd next week, the Welsh Conservatives are bringing forward a debate calling on the Welsh Labour Government to make urgent representations to the UK Government to ensure Welsh charities, not-for-profits and voluntary organisations delivering public services will be included in the UK Government’s definition of ONS-defined public sector employees and will be as a result reimbursed for the rise in employer national insurance contributions.
Commenting ahead of the debate, Welsh Conservative Shadow Secretary for Economy, Energy and Welsh Language, Samuel Kurtz MS, said:
“Welsh charities, not-for-profits, and voluntary organisations play a vital role in delivering public services that the most vulnerable in society depend upon.
“Labour’s decision to increase employer National Insurance contributions will have a detrimental impact on the future and viability of these organisations.
“The Welsh Conservatives are clear: Labour must ensure that Welsh charities, not-for-profits, and voluntary organisations are reimbursed for this rise in employer National Insurance contributions.”
Also commenting, Wales Council for Voluntary Action, said:
“WCVA is deeply concerned about the impact of increased Employers’ National Insurance contributions on voluntary sector organisations across Wales. Many of these organisations already face significant financial pressures, and this increase threatens to put additional strain on their resources and potentially jeopardise vital services delivered to communities.
“We have strongly urged both the UK and Welsh Governments to recognise the invaluable role the voluntary sector plays, especially in partnership with public services. We believe it is critical for voluntary organisations delivering public services to be treated equitably and included in any financial support measures, ensuring they are not disproportionately disadvantaged by these policy changes.
“WCVA welcomes the debate in the Senedd and hopes it will lead to productive discussions and practical solutions to protect the voluntary sector’s essential contribution to Welsh society.”
The motion which will be debated next week reads:
To propose that the Senedd:
1. Notes the UK Government’s increase to employer national insurance contributions, coming into effect for the 2025-26 tax year.
2. Recognises the detrimental impact the increase to employer national insurance contributions will have on Welsh charities, not-for-profits and voluntary organisations.
3. Calls on the Welsh Government to make urgent representations to the UK Government to ensure Welsh charities, not-for-profits and voluntary organisations delivering public services will be included in the UK Government’s definition of ONS-defined public sector employees and will be as a result reimbursed for the rise in employer national insurance contributions.
https://media.service.gov.wales/news/15-millionth-wales-funded-tree-planted-in-uganda
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