Age UK in Leicestershire may cut services for older people due to a £400k National Insurance increase
Leicester: Age UK in Leicestershire is worried about cutting services for older folks. They face a £400,000 increase in National Insurance costs. This charity runs day centers and shops in the area, and they say this change will hit them hard.
Peter Bedford, the Conservative MP for Mid Leicestershire, brought this issue up in Parliament. He spoke to Sir Keir Starmer during Prime Minister’s Questions. Bedford praised Age UK for helping pensioners who lost their winter fuel payment due to the Government’s Budget.
He pointed out that the charity now faces a huge financial burden. Many charities depend on donations and volunteers. With rising costs, they might have to cut services or even close down.
After the discussion in Parliament, Tony Donovan from Age UK Leicestershire expressed his gratitude. He said it’s important for the Government to understand the financial strain on care providers. This could lead to closing essential services, putting more pressure on local NHS and social services.
The National Insurance increase for charities was announced in the Government’s Autumn Budget. In response, many charities signed an open letter to the Treasury, asking them to reconsider this policy.
A spokesperson for HM Treasury told the BBC that the tax rules for charities are very generous. They mentioned that the Government has increased the Employment Allowance to help small charities and businesses. Charities can still claim reliefs for employer NICs and are exempt from business rates.
