House of Lords want changes to the bill but won't make it to next reading

A bill that would exempt charities with an annual revenue of less than £1m exposed to the National Insurance hike, has been passed in the Lords.

However, despite peers backing, the amendments to the National Insurance Contributions (Secondary Class 1 Contributions) Bill are highly unlikely to remain when it has its third reading in the House of Lords next month. 

Conservative peer Baroness Neville-Rolfe put forward three amendments – all of which were accepted.

An amendment was also put forward that would exempt social care charities and transport providers serving people with educational needs from the upcoming rise.

Third sector employers are already laying off staff because of the rise with the sector in the UK expected to be hit with an increase of £1.4 billion on staff costs.

The UK Labour government has remained intransigent to the plight of charities, despite vital services inevitably having to be shed.

“The minister has been stony-faced and utterly unreceptive to the genuine and deeply felt concerns of millions of businesses and charity trustees across the country,” Neville-Rolfe said.

“Noble lords across the house have been contacted by many charities which are facing tough financial decisions.

“We have had many worrying examples throughout the stages of this bill.”

Lord Livermore, Labour peer and financial secretary to the Treasury, said

“That is why we have more than doubled the Employment Allowance to £10,500.

“This means that more than half of businesses, including charities, with National Insurance liabilities will either gain or see no change next year.

“It is important to recognise that all charities can benefit from the Employment Allowance.”