The Chief Executives of over110 homelessness organisations in England have signed an open letter to the Chancellor of the Exchequer, the Rt Hon Rachel Reeves. The letter lays out the sector’s urgent concerns about the impact of the rise to National Insurance contributions announced in the Budget.
Signatories include the CEOs of Crisis, St Mungos, Riverside Housing and the National Housing Federation, as well as the Chief Executives of many smaller local organisations providing vital services in their communities.
The letter has been coordinated by Homeless Link, the membership body for the homelessness sector. The organisation estimates that the changes to National Insurance will cost homelessness services between £50m and £60m per year.
Rick Henderson, CEO of Homeless Link, says: “Homelessness services are already under enormous pressure from overstretched funding, and increasing demand for services as the number of people who are facing homelessness is sky rocketing. Whilst extra money was allocated in the budget it is unclear whether this will reach frontline services or disappear into the temporary accommodation funding black hole.
“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.
“I have 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. 110 organisations of every shape and size and from every corner of the country have signed this letter. We need action now.”
