Unintended Consequences
Changes To Employers NI Contributions
What are the unintended consequences of the changes in Employer’s National Insurance?
Who will be impacted and how?
The figures are stark: C-Change estimate the changes will mean £183,000 of additional costs, and CCPS calculated it will amount to £30million for CCPS member organisations in 2025/26.
What does that actually mean though?
These changes (National Insurance: What are NI and income tax and what do I pay? – BBC News) impact real people and real lives. We launched a campaign highlighting the ‘unintended consequences’ and costs of this decision for people who rely on support to live their good lives. We looked at the impact on individuals, their families and those who love and care about them.
For example ‘F’, who is autistic, has a learning disability and in his mid-twenties. The changes amount to a 3.7% cost added to his individual budget which is the equivalent of a reduction of 6.7 hours of support.
The changes will ultimately mean, in order to balance budgets, there will be less money available for support. This support is not a luxury, it’s vital for people to live their lives and participate and contribute to their communities.
The graphics below give you a snapshot of what this means for real people, their families and communities.
The recent announcements around Employer’s National Insurance contributions represent a real and present threat for the not-for-profit and social care sector. Scotland’s non-for-profit social care sector employs one third of social care staff in Scotland and supports the 1 in 25 people who rely on social care each year.
In November, alongside other not-for-profit social care organisations C-Change wrote to local and national political representatives to highlight the impact of this change on our work and communities.
We have continued to use our voice, and also to amplify the voices of others, to show what this will mean for people managing their budgets and the real terms impact of changes in support for the people we work for, their families and loved ones.
These decisions put huge pressure on already stretched individual budgets. We will continue to use our voice to preserve the dignity and opportunities of the People We Work For and show that this decision will have damaging and lasting impacts on the sector, jobs, morale but most importantly, on people living their good lives who deserve better.
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