Hospice fears impact of national insurance rise

St Margaret's Hospice said the service it offers to residents will be 'significantly impacted'

A hospice says a rise in National Insurance (NI) employers contributions will cost it £300,000 a year and "significantly impact" services.

St Margaret's Hospice in Taunton, Somerset, has joined other charities calling for an exemption to the increase announced in last week's Budget.

"We have none of the mechanisms to mitigate against those increases and we can't pass those costs on," said Keith Sinclair, Chief Executive of Brainwave.

In a statement, a government spokesperson said it has protected small charities by more than doubling the Employment Allowance to £10,500.

James Rimmer, CEO of St Margaret's Hospice, said they should be exempt from the National Insurance rises

Brainwave helps children with disabilities and additional needs by providing them with specialist physio and speech therapy.

Mr Sinclair said the charity will be paying an extra £60,000 each year, when the NI rises take effect next April.

"All of our income is self-generated so we don't receive any public funding," he continued.

"So an extra £60,000 on top of that is extremely challenging for us.

"What it probably means is that organisations like ours aren't going to be able to invest, and won't be able to look at increases of our own people."

In a statement, a government spokesperson said: “We have taken tough decisions to fix the foundations so we can fund more NHS appointments, hire more teachers and build more affordable homes."

They continued: “We have protected small charities and businesses by more than doubling the Employment Allowance to £10,500, meaning more than half of them with NICs liabilities either gain or see no change next year."