Responding to the passing of the National Insurance Contributions Bill and the voting down of the exemption for charities providing health and care support, Dr Rhidian Hughes, Chief Execuitive of the Voluntary Organisations Disability Group (VODG) says:
'It is incredibly disappointing that given all of the evidence of the detrimental impact of the Employer National Insurance Contribution (ENICs) on charities, that the government chose to vote down an exemption for charities.
'The cost of the ENICs increase has been estimated to be £1,8bn a year – a cost neither public sector commissioners nor charities can shoulder.
'The state has legal responsibilities to deliver social care to those who need it but do not have sufficient personal financial assets. The government could have chosen to exempt charities from the additional National Insurance payments, to protect frontline services, the social care workforce and the essential contribution third sector providers make to millions of people’s lives. Instead, many charities now face a very uncertain future.
'Despite additional funding following the Autumn Budget for social care, fees remain far short of what’s needed to cover the costs of care and that now places charities in an impossible possible.
'Without the exemption or funding, the rights and legal entitlements of disabled people to care and support will be pulled away as charities are forced to stop delivering public service contracts. Commissioners are in no place to be able to pick up and run these services and the question we are left with is who will then support disabled people with life-long conditions?'
ENDS