Letter to Rachel Reeves, Chancellor of the Exchequer: Autumn Budget 2024 – employers’ National Insurance contributions

Rt Hon Rachel Reeves MP
Chancellor of the Exchequer

By email
5 November 2024

Dear Chancellor,  

National Insurance employer contributions increase   

Following my letter dated 25 October - co-authored with NICVA, WCVA, and NCVO - I am writing to address the increase in National Insurance (NI) employer contributions announced as part of the Autumn Budget 2024. 

In our letter, we outlined the significant financial pressures already facing our sector - with costs climbing, funding falling, and demand for services continuing to increase. It was bitterly disappointing, then, that increase to employers’ NI contributions have now been taken forward, seemingly without due consideration for the negative impact it will have on voluntary organisations. 

While it is, of course, welcome that smaller organisations will be insulated, with an increase to the Employment Allowance, many voluntary organisations will be faced with significant increases to their operating costs as a result. This puts vital services, jobs, and organisations, at risk. We estimate that this will cost voluntary organisations around £75 million in Scotland alone.  

While I understand public sector employers will be compensated for increased NI employer contributions, no such commitment has been made for the voluntary sector. In the spirit of partnership, as outlined in the UK government’s recently published Covenant framework, I urge you to ensure our sector is not burdened with additional financial costs, like the provisions made for public sector employers. Our sector is asking for fair treatment, not special treatment. 

I look forward to receiving your response in due course.  

Yours sincerely,  

Anna Fowlie,
Chief Executive
Scottish Council for Voluntary Organisations (SCVO)