Conservative peer Lord Howard Leigh has raised concerns about the impact of Chancellor Rachel Reeves budget on Jewish charities Norwood and Jewish Care.
Former Tory Party treasurer Lord Leigh said the result of increased employer National Insurance Contributions for charities in the social care sector would be “an inevitable tightening of staff ratios” leaving residents not receiving “the care and attention they expect.”
Speaking at a Lords Grand Committee hearing he added it was “outrageous” for the sector that while public bodies and the NHS were protected from the increase, “they would be procuring beds from organisations like Jewish Care who are going to have to pay.”
Lord Leigh at Lords Grand Committee
Lord Leigh told the committee he was grateful that he had been briefed by the Norwood charity “about their particular difficult times” and those of the whole care sector.
The hearing scrutinised the possible impact of the government’s National Insurance Contributions Bill, which has already made its way through the Commons and up to the committee stage in the Lords.
Norwood chief Executive Naomi Dickson later said:”We are grateful to Lord Leigh for continuing to amplify our concerns and those of the social care sector today at the Lord Grand Committee, about the impact of National Insurance increases on charities such as Norwood.
“With public funding under so much pressure, organisations like Norwood and its partners in the community are having to step in to support vulnerable children and families, who either require our holistic support where a diagnosis is in place in lieu of available publicly-funded services, or struggle to have their needs scoped when faced with an extremely long wait for a diagnosis.
“The budget announcements risk further tying our hands in already trying circumstances, presenting us with up to an additional £2m staffing bill we are forced to balance with pursuing a dynamic growth agenda designed to fill the gaps in local authority provision and government funding for families struggling to cope with neurodiversity and neurodevelopmental disability.”
Following criticism of the measures the chancellor has said the government was forced to take tough decisions in order to rebalance the economy with one of the toughest being to raise the rate of employer NICs from 13.8% to 15%.
The government argued that that Employment Allowance had been doubled to £10,500, which meant more than half of businesses (including charities) with NICs liabilities either gain or see no change next year.
Businesses and charities will also still be able to claim employer NICs reliefs including those for under 21s and under 25 apprentices, where eligible.
The government also said it provides support to charities through a range of reliefs and exemptions, including reliefs for charitable giving.
The budget announced £1.3bn extra for local authorities, including £600millon ringfenced for social care.
