Northern Ireland's Voluntary Sector Faces Critical Financial Pressure from NICs Increase

Last updated
3 January, 2025
Graphic with text that reads: increased national insurance contributions will have a significant impact on the voluntary and community sector

New research from the Northern Ireland Council for Voluntary Action (NICVA) reveals devastating impacts of the UK Government's planned increase in Employer National Insurance Contributions (NICs) on the voluntary and community sector.

The survey of 68 organisations shows 76% expect major financial impacts, with many facing additional costs between £5,000 and £200,000 annually from April 2025. One social care provider anticipates costs between £200,000 - £500,000.

"This NICs increase threatens the very sustainability of Northern Ireland's voluntary sector at a time when our services are needed most," said Celine McStravick, Chief Executive of NICVA. "Unlike public sector organisations, we have no protection against these rising costs. Without immediate government    intervention, we'll see widespread service reductions, job losses, and diminished support for our most vulnerable communities."

Key findings:

  • 50% of organisations project budget increases between £5,000-£200,000
     
  • Organisations report inevitable redundancies, particularly in core administrative roles
     
  • Service reductions will affect childcare, disability support, mental health services, and community programs
     
  • Many organisations will struggle to maintain Living Wage commitments

 

NICVA calls for:

  1. The UK Government to reimburse voluntary sector NICs increases
  2. The Northern Ireland Executive to reflect increased costs in all future public sector contracts and grants

The voluntary sector employs over 55,000 staff in Northern Ireland, delivering essential services often on behalf of government. Without support, this NICs increase will significantly impact service delivery and community support across the region.

Shauna
O'Neill
Communications Officer