Our CEO responds to yesterday’s budget
31st October 2024
Our CEO, Susan McEniff, responds to yesterday’s budget:
“There was a lot to digest in yesterday’s budget. It certainly included some welcome changes; increased funding for public services and housing, an increase to the carers allowance and the earning limit, plus news of a review into how those who pass the earning limit are penalised. The extension to the Household Support Fund is positive news, along with a reduction in debt repayments from welfare benefits from 25% to 15%. Whilst only a part of a complex issue, this will make a positive difference to struggling families juggling repayments and being able to afford the essentials they need each month, including food and utilities. The increase in pension credit is also welcome.
Whilst there are positive aspects, as an organisation, and for Voluntary, Community and Social Enterprise (VCSE) sectors and wider society, the impact of National Insurance Contribution increases and the reduction of the threshold at which employers need to pay will be felt, particularly during what are already tough times. Charities, in particular, find absorbing increased overheads challenging, often having no option to increase prices to raise additional revenue, for example.
The Joseph Rowntree Foundation predicts that following the budget and OBR forecasts, average disposable incomes are now set to fall over the coming five years – with the average family set to be £770 worse off a year in real terms by October 2029. This will impact those needing our help, service delivery, and increase fundraising challenges even further. The Foundation also predicts that the poorest third of households will see their real disposable incomes fall by significantly more than those with higher incomes. So, in short, our services will continue to be as vital as ever as we reach our 150th birthday in 2026 and beyond.
As tough times continue, we hugely appreciate the support we receive across the community to enable us to continue to improve the health, wellbeing and dignity of those experiencing financial hardship and crisis.”
Friday 1st November update:
“We’ve proudly signed the NCVO’s open letter to the Chancellor, calling for reconsideration of the National Insurance Contributions (NICs) uplift that is impacting charities across the UK. This increase places additional financial strain on charities like ours, during a period of increased demand and during difficult economic times. Charities provide essential services, change lives every day and make a huge impact within our communities – but to continue doing so, we need a fair and sustainable funding environment. Therefore, we request parity with the public sector that increased employer NICs are reimbursed for the charitable sector as well.”
Read the NCVO’s open letter and consider lending your support here.