The ERNICs rise has now garnered significant national attention, with the ITV News report focusing on the impact that the increase in costs would cause for charities and the people and communities they serve. This coverage simply would not have been possible without the contributions of our members and charities from across the sector.
CFG would like to thank all those who have shared their concerns with us about this issue, participated in our survey, and supported our activities.
Report highlights charity concerns
Several charities were mentioned during the ITV report, including Mencap and Marie Curie, whilst CFG’s Deputy CEO, Clare Mills, was interviewed.
During the segment, Clare discussed the impact on large charities, saying: ‘many of them having to look at recruitment freezes or even in the worst case scenario redundancies and the people who are going to feel the impact are the people and communities who rely on the service and support those charities provide.’
This was highlighted by ITV with an interview of Samira Najim, who relies on the Little Miracles charity. The disability charity, which helps over 50,000 families will itself face a £24,000 increase in costs. "These facilities rely on fundraising and it just puts them in a terrible position and we really don't want to lose or see any cuts to this service."
Michelle King, CEO of the charity, said: ‘to find an extra £24,000 is so hard and we’re doing all we can to avoid cutting services.’
ITV quoted data from the Charity Retail Association which showed that 27% of charity shops are likely to close as a result of the ERNICs rise, and the report also noted NCVO’s analysis that the sector would lose £1.4bn due to the changes.
Since the budget
Since last October’s budget, CFG has been working hard to support members, firstly through launching a survey to help analyse the impact that the unexpected increase in costs will cause for charities, the people they serve, and for the public services which many charities provide.
CFG’s survey, which had over 400 respondents, showed that 87% of charities are concerned about affording the rise in ERNICs, a number which was quoted during the ITV segment. The survey also revealed that over 6 in 10 charities (61%) were likely or very likely to consider reductions in staff.
We will continue to work closely with the government and policymakers to keep highlighting the impact on charities and the people and communities they serve. That this issue has been picked up by MP’s and national news media, is testament to the work of so many charities and shows the power the sector can have by working together.
More on this topic:
Report: CFG's survey reveals deep concern over rise in ERNICs
Impact of National Insurance rise on charities raised in House of Commons
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