Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment has she made of the potential impact of changes to Employer’s National Insurance Contributions announced in the Autumn Budget 2024 on charities and community organisations in (a) the West Midlands and (b) Aldridge-Brownhills constituency.

In order to repair the public finances and raise the revenue required to fund our public services, the government has taken the difficult decision to increase employer National Insurance which has included the charity sector.

HMRC has published a Tax Information and Impact Note that covers the employer NICs changes, which can be found here: https://www.gov.uk/government/publications/changes-to-the-class-1-national-insurance-contributions-secondary-threshold-the-secondary-class-1-national-insurance-contributions-rate-and-the-empl/changes-to-the-class-1-national-insurance-contributions-secondary-threshold-the-secondary-class-1-national-insurance-contributions-rate-and-the-empl

The Government has protected the smallest businesses and charities from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500, which means that 865,000 employers will pay no NICs at all next year, more than half of employers will see no change or will gain overall from this package, and all eligible employers will be able to employ up to four full-time workers on the National Living Wage and pay no employer NICs.

More broadly, within the tax system, we provide support to charities through a range of reliefs and exemptions, including reliefs for charitable giving, with more than £6 billion in charitable reliefs provided to charities, CASCs and their donors in 2023 to 2024.