NI tax rise 'will cost air ambulance £100k a year'

Changes to National Insurance could cost the Essex and Herts Air Ambulance £100,000 a year, according to Liberal Democrat MP Marie Goldman

The rise in employers' National Insurance (NI) contributions could cost an air ambulance charity an extra £100,000 a year, an MP said.

Marie Goldman, the Liberal Democrat MP for Chelmsford, told Parliament she had been contacted by the Essex and Herts Air Ambulance about the changes announced in last month's Budget.

She asked the government to consider exempting charities from the changes.

Commons leader Lucy Powell said the government was looking at how extra funding for the NHS could be used to support health charities.

'Lifesaving'

Goldman said: "Earlier this week I received an email from Essex and Herts Air Ambulance, a registered charity that provides helicopter emergency medical services for the critically ill and injured of Essex, Hertfordshire and surrounding areas.

"In the last financial year alone they attended 2,635 missions. It costs in excess of £1m every month to keep the service operational and cover all charitable costs.

"This would not be possible without the goodwill of people in Essex and Hertfordshire, but the recent changes to employers' National Insurance would cost the charity an additional £100,000 per year."

She asked if the leader of the Commons would consider a debate on the issue to recognise the "vital, sometimes lifesaving, role that this sector plays in all of our communities".

Marie Goldman called on the government to consider exempting charities from changes to employers' National Insurance

Powell said the Health Secretary, Wes Streeting, was looking at how the funding boost to the NHS budget "can be used to support other health charities and health services".

"There will be an update to this House soon," she responded.

What is changing?

Businesses currently pay a rate of 13.8% on employees' earnings above a threshold of £9,100 a year.

In the Budget, Chancellor Rachel Reeves said this rate would increase to 15% in April 2025, and the threshold would be reduced to £5,000.

The employment allowance - which allows companies to reduce their NI liability - will increase from £5,000 to £10,500.

In total, Reeves said the changes would raise £25bn a year by the end of the period covered by the Budget.