Yesterday (07/01/25), Windsor MP Jack Rankin raised concerns about two charities operating in his constituency during a parliamentary debate about the impact of the government’s rise to employer national insurance contributions on charities.
In the October Budget, Chancellor Rachel Reeves raised the rate to 15% and the threshold at which national insurance contributions apply was brought down from £9,100 to £5,000, bringing in some part-time workers who previously had not caused their employers to be subject to national insurance contributions.
Thames Valley Air Ambulance, which works exclusively with the NHS, will face a £130,000 tax increase, while the NHS has been protected from the rises. Meanwhile, Thames Hospice needs to find a way to cover a £300,000 increase, with CEO Rachael De Caux expressing “deep concern” at the government’s lack of commitment to the sector.
Speaking in Westminster Hall, Rankin pointed out the impact of the rises on charities that carry out pivotal work in supporting our healthcare service lies in stark contrast to the government’s pledge to support the NHS.
The rises are set to come into force in April, and Rankin called on the government to rethink its approach.
In his contribution, Jack Rankin MP said:
“As we are debating here, senior members of the Thames Valley Air Ambulance are working out how to cover the £130,000 extra bill for the jobs tax next year. The charity, an outstanding resource for Berkshire, Oxfordshire and Buckinghamshire, works exclusively for the NHS and saves it many times over what the jobs tax will raise.
“Thames Hospice in my constituency will have an extra £300,000 bill; once we add in the effect of the minimum wage and matching the nursing settlement, it will have to find well over £0.5 million next year just to stand still.
“The Government say that they want to help the NHS, but their Budget is doing the opposite. Why are they doing this? Is it an accidental oversight or a misunderstanding of how the sector works? I call on them to rethink their approach and fix this.”
Commenting, Amanda McLean, CEO of Thames Valley Air Ambulance said:
“Thames Valley Air Ambulance provide outstanding critical care to people who are very seriously ill or injured and facing what is probably the worst day of their lives.
“We receive no government or NHS funding but are entirely funded by the community that we serve. The additional cost of over £130,000 in what is already a challenging economic climate, is incredibly disappointing and gives the impression that the government doesn't value or understand the difference that we, and other air ambulance charities, make.”
