Open letter to MPs in response to Autumn Budget

Following the Chancellor’s announcement in the Autumn Budget of a National Insurance Contributions (NIC) increase next spring, many charities now face the daunting challenge of absorbing these additional costs while striving to deliver essential services.

In response, I have not only joined others in signing the NCVO‘s open letter to the Chancellor but also personally written to all our MPs across the North East about this, urging immediate action to protect charities from the impact of the NIC increases.

As a national charity headquartered in the North East, we need to make it clear to our elected officials that without similar support to that offered to the public sector, many charities will struggle to survive these changes. This will further deepen the health inequalities we are already witnessing across the region.

I am sharing this letter openly and urge other charity leaders to write to their MPs so the real impact of these proposed changes is fully understood.

I am writing on behalf of Everyturn Mental Health, a charity delivering essential NHS mental health services to tens of thousands of people each year.

I urge you to take immediate action to protect charities from the severe impact of the proposed increase in National Insurance Contributions (NIC) announced in the Autumn Budget. This rise will impose a significant financial burden on charities in the region and, as a result, will negatively impact your constituents who rely on their support.

While public sector services are shielded from this increase, charities will face an estimated £1.4 billion in added costs across the sector. For many smaller charities, this burden could directly affect their ability to deliver services in your constituency. Each pound diverted to higher NIC costs is a pound lost to frontline services, meaning fewer resources for those who need support most.

The region’s 7,000 charities and community organisations employ more than 37,000 people and have a financial value of £1.7 billion. But unlike private companies, they cannot offset rising costs by increasing prices. So this leaves many charities with unsustainable choices: cutting services, reducing staff, or even closing essential programmes.

Many North East charities are already struggling to keep their doors open, yet the need for their services has never been greater. People living in the North East have shorter lifespans and spend a larger proportion of their lives in poor health than elsewhere in the country. The soaring cost of living is pushing more people into profound hardship: 50% of people accessing our crisis services in the last year told us that financial worries were the cause of their distress. This year’s Office for National Statistics data on deaths by suicide in 2023 showed a 15% increase in these tragedies in the North East.

We urge you to advocate for a targeted exemption or relief from this NIC rise for charities, ensuring that organisations like ours can continue to provide vital services to your constituents.

Thank you for your immediate attention to this critical issue.

Yours sincerely,

Adam Crampsie

Chief Executive
Everyturn Mental Health