WCVA urges Welsh Government to mitigate the impact of UK Government’s budget on voluntary sector employers.
RESPONDING TO THE BUDGET
Following the announcement of UK Government’s 2024 budget last week, you will no doubt be aware of the incoming rise in National Insurance contributions faced by employers.
We are aware of and share the sector’s concerns on the impact this will have on voluntary organisations’ finances, so we will be sending the below letter on behalf of the Third Sector Partnership Council (TSPC) and Third Sector Support Wales (TSSW) to Cabinet Secretary for Finance and Welsh Language, Mark Drakeford.
ADDING YOUR VOICES
We will be sending this on behalf of the sector so if you would like to show your support for this call you can add your name by emailing policy@wcva.cymru.
The full letter is available below:
Dear Cabinet Secretary for Finance and Welsh Language,
Sent to: Correspondence.Mark.Drakeford@gov.wales
Friday 8 November
Subject: request to mitigate the impact of the employer’s national insurance contribution increases on the voluntary sector
We are writing on behalf of the Third Sector Partnership Council (TSPC), Third Sector Support Wales (TSSW) to voice serious concerns about the increased financial burden that the rise in employer’s National Insurance contributions, introduced in the 2024 UK Government budget, will place on the voluntary sector in Wales.
Many voluntary organisations in Wales operate under tight financial constraints and play a vital role in delivering essential services alongside the public sector, yet only public sector employers are set to be reimbursed for these increased costs.
This increase in National Insurance contributions is a significant new cost that many organisations simply cannot absorb without a corresponding impact on their service delivery. We therefore urge the Welsh Government to:
- Carefully consider these impacts as it produces its draft budget
- Uplift grants and contracts in line with these and other inflationary pressures.
This change represents more than just a financial setback; it is a fundamental challenge to a sector already under immense pressure from sharp rises in service demands, increases in the cost of living driven by inflation and constrained funding. These are not just figures – they represent critical services that could face cutbacks if funding does not adapt to meet these unforeseen costs.
We stand ready to work with the Welsh Government as partners to address these concerns.