The move follows concerns about increases in employers’ national insurance (NI) contributions.
Charities in Midlothian are calling on the UK Government to ensure that support is provided to cover costs brought on by the increase in employers’ national insurance contributions.
Recent announcements from the UK Budget have raised extreme concern over the impact on charities and community groups across Midlothian.
The increase in employer’s NICs from 13.8% to 15% is a further financial burden coming at a time when many organisations are already teetering on the edge of financial crisis.
Without support from the UK Government to mitigate the impact of these increases, there is significant threat of redundancies and service closures across the voluntary sector.
For charities in Midlothian, the impact is already being felt.
One Midlothian charity told Midlothian Third Sector Interface (MTSI): “It will cost us close to £100,000 extra per year in increases to NI contributions and the real living wage.”
Another added: “The increase in national insurance contributions alone will cost us over £10,000 annually. We are already struggling to meet growing demand for our services.”
MTSI said charities in Midlothian do not operate in isolation: they complement and support public services, from mental health support and social care to youth services and food banks.
They added that the loss of these vital third sector services will not only be detrimental to the communities they serve but also to the public sector, which will be further strained, leaving people with nowhere to go.
These announcements come on top of Midlothian Council’s recent savings proposal consultation, which outlines potential cuts and reductions to public services across the county as the council seeks to lessen its budget shortfalls.
Unlike the public sector, which has been assured support to offset NIC increases, the voluntary sector has yet to receive any such commitment.
MTSI are calling on the UK Government to extend this support to employers in the third sector.
