Information from Charity Finance Group (CFG)

Peers vote to exempt small charities from rise in ERNICs

The National Insurance Contributions (Secondary Class 1 Contributions) Bill entered the report stage on 25 February, passing to the House of Lords where peers debated amendments. Charities with revenue under £1m could be exempted from the Government’s rise in national insurance contributions following a lively debate in the House of Lords.

Baroness Sater warned that without an exemption, charities “will greatly diminish, and the majority will need, at best, to shrink the number of people they employ and the services they provide.”