The rise in national insurance contributions announced in the Budget could be the ‘nail in the coffin’ for many organisations providing homelessness services, charities warn.
More than 100 homelessness organisations, including Crisis and St Mungos, have signed a letter to Chancellor Rachel Reeves warning that the national insurance changes will cost homelessness services between £50m and £60m per year.
Rick Henderson, CEO of Homeless Link, warned that homelessness services were already ‘under enormous pressure’ due to demand for services ‘sky rocketing’.
‘I fear that this national insurance rise could be the nail in the coffin for many service providers. Some are facing hundreds of thousands of pounds in additional tax bills.
‘The public sector is getting a rebate, and we want to make sure that this is also made available for vital homelessness services.’
Henderson added that he had ‘rarely seen the sector as angry and frightened as they are by this proposal.’
‘It is a very real threat that could impact thousands of people who are currently homeless or threatened with homelessness, leaving them without support.’
