by Keith Eales, CEO
Plenty has been said about this already, but I felt it important to write about the National Insurance increase and the effect it’s having on Warwickshire Vision Support and, I’m sure, every other charity.
After a few weeks of moaning into my cappuccinos and muttering “seriously?” at spreadsheets, I’ve given in to the need for a therapeutic rant.
The start of a new tax year always brings a sense of fresh starts: new budgets, new plans… and, this year, a shiny new NI hike.
Like a surprise birthday party, but with fewer balloons and more Excel-induced stress.
As a regional charity, we don’t have shareholders or multimillion-pound contracts to fall back on. What we do have is a responsibility to support thousands of people in this region living with sight loss.
Unfortunately, no one told the taxman that goodwill isn’t a revenue stream.
Charities aren’t like “normal” businesses
I understand why businesses are passing on their increased NI costs. I’ve already had several polite-but-painful conversations with suppliers who’ve adjusted their pricing to reflect their higher NI costs.
That works where the forces of supply and demand can have an impact. But when you’re a charity, passing on costs is like passing the hat around again, except this time, it’s to cover tax and not charitable services.
We don’t sell products with a mark-up or charge by the hour. We rely on grants, donations, and people who believe that helping others is worth something, even if it doesn’t generate a surplus. So, when our staffing costs go up, we can’t just tweak a pricing model, we have to dig deep.
This could mean saying “not yet” to someone who really needs a “yes”, and that’s the part that hurts the most.
I was particularly disappointed to see the House of Lords’ amendment that proposed exempting charities from the increase was overturned. Let’s be clear, this isn’t about tax-dodging. This is about recognising that our sector’s “return on investment” isn’t measured in profit, but in people.
Every pound we spend on NI is a pound not spent on hospital outreach, community groups, assistive tech, befriending services, or a hundred other things that truly change lives.
Of course, many charities are resilient and will adapt. Like a circus act juggling flaming torches while riding a unicycle on a tightrope – blindfolded – over a pit of alligators.
But I’d be lying if I said it didn’t feel like we’re being asked to do more with less while carrying the extra weight of government policy.
But here is the key point…
If charities are expected to absorb higher costs and meet rising demand, then we need intelligent policy to match. Not just fairness in theory, but fairness in practice. That means real support, smart exemptions, and a long-term view that recognises what we contribute.
For now, we carry on. Just with slightly tighter belts, slightly longer hours, and a slightly louder sigh when someone says “fiscal responsibility.”