Question to the Department for Digital, Culture, Media & Sport:

To ask the Secretary of State for Culture, Media and Sport, whether she has made an assessment of the potential merits of establishing a fund to support (a) voluntary, (b) community and (c) social enterprise sector organisations to offset increases to National Insurance Contributions.

This government recognises the vital role that charitable organisations and community groups play in providing crucial support to families and individuals across the country. These organisations, as well as the wider Voluntary, Community and Social Enterprise (VCSE) sector, are integral to the Government’s vision for national renewal and delivery of the five national missions.

DCMS Ministers have met with representatives from the VCSE sector and are aware of their concerns about the National Insurance contributions (NICs) changes. We recognise the need to protect the smallest businesses and charities, which is why we have more than doubled the Employment Allowance to £10,500, meaning that more than half of businesses (including charities) with NICs liabilities will either gain or see no change this year.

We continue to promote availability of funding for smaller charities in several ways, including delivery of a number of grant schemes, such as the ‘Know Your Neighbourhood Fund’. Support for charities is also available through social investment which provides access to grants, repayable finance and a blend of the two. In particular, this government is continuing to look at how dormant assets can be used to support the availability of finance to facilitate VCSEs becoming more entrepreneurial and financially resilient. An estimated £350 million will flow into the Dormant Assets Scheme between 2024-28, with details on how this money will be distributed to be provided in due course.