Charities and Hospices: Employers' Contributions

(asked on 15th September 2025) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of providing an exemption for hospices and charities providing health and care services from the increase in employer National Insurance contributions.


Answered by
Dan Tomlinson Portrait
Dan Tomlinson
Exchequer Secretary (HM Treasury)
This question was answered on 13th October 2025

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. That means more than half of businesses with NICs liabilities either gain or see no change this year.

The Government also provides support for charities via our tax regime, which 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.

Furthermore, the government is investing £100 million to improve hospice facilities, and a further £26 million revenue funding to support children and young people’s hospices this year. This is the biggest investment in hospices in a generation.

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