Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will introduce an exemption from changes to employer National Insurance contributions for (a) small and (b) local charities.

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. All charities are eligible for the Employment Allowance, even if they are wholly or mainly carrying out functions of a public nature.

The UK tax regime for charities, including an exemption from paying business rates, is among the most generous of anywhere in the world with tax reliefs for charities and their donors, worth just over £6 billion for the tax year to April 2024.