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Last Week Voluntary Organisations’ Network North East (VONNE) released a report showing the impact of the higher employer National Insurance contributions on the VCSE sector in the North East. The report was compiled with support from Prof. Tony Chapman at Durham University using data from the Community Foundation’s Third Sector Trends Study.
The report shows that the rise in employer NICs together with the higher employer allowance is estimated to add £19.5 million to the costs of the workforce in the region in 2025/26. At combined authority level this figure breaks down to £15.6 million in the North East Combined Authority area and £3.9 million in the Tees Valley Combined Authority area.
In the report VONNE Chief Executive Martin Brookes notes that an already hard-pressed sector in the North East is going to face the increase with no obvious ways to pay and that this should be of concern to the whole sector as well as to those who rely on the sector, such as local authorities, combined authorities and the NHS amongst others.
Rob Williamson Chief Executive of the Community Foundation said:
“It is great to see such effective use of the Third Sector Trends research we have long funded and championed, albeit the findings here are pretty depressing. As well as putting pressure on local organisations supporting some of the most vulnerable people in our communities, this pressure will increase on funders with available funds effectively shrinking to support these increased costs.”
You can read the full report including the methodology used here.