New National Insurance rules will be 'life changing' for four million vulnerable adults

UK disability charities say National Insurance contributions rising will cause ‘life-changing’ cuts. Charities have warned the Labour Party government of “life-changing consequences” for a million vulnerable children and adults as a result of cuts to state-funded disability services.

The Voluntary Organisations Disability Group (VODG), which represents 100 charities in England, said the move had been “ill thought through”. It said the NICs and national minimum wage increases would leave many members having to cut back on staff and services.

“Social care is designed to protect the most vulnerable members of our community, and this Labour government is letting them down,” said the VODG chief executive, Rhidian Hughes. It comes as more than 100 homelessness charities, including Crisis and St Mungo’s, delivered an open letter to Reeves, the chancellor, on Monday.

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They have warned the NICs rises could take up to £60m a year from frontline services. Rick Henderson, the chief executive of Homeless Link, which organised the letter, said he had “rarely seen the sector as angry and frightened” as they were by the planned NICs rise.

“It is a very real threat that could impact thousands of people who are currently homeless or threatened with homelessness, leaving them without support,” he said. In reply to the growing unrest over the decision from the government, it has spoke out.

In an update issued today (Monday November 11), a government spokesperson has said: “We had to take difficult decisions to fix the foundations of our public services – meaning that we could bolster the health and social care system by an extra £22.6bn and announce £1bn to reduce homelessness.

“Our tax regime for charities, including an exemption from paying business rates, remains one of the most generous in the world and is worth just over £6bn a year to the sector.”