Our CEO, Liz Bayram, has written to the Chancellor to urgently call for action on the planned increase in employer National Insurance Contributions (NICs), highlighting the severe impact this policy will have on the voluntary sector and the essential services it provides. Read our response to the Budget.
Dear Ms. Reeves,
I am writing on behalf of AdviceUK, the UK’s largest support network for free, independent advice organisations, to raise urgent concerns about the planned increase in employer National Insurance Contributions (NICs). This measure will have a significant and disproportionate impact on our member organisations and the vital services they provide to communities.
Our members deliver essential advice services to individuals and families facing crises such as debt, housing insecurity, and benefit disputes. Independent advice organisations are facing unprecedented demand, with our Advice Saves campaign’s research finding that 90% of staff reported increases in clients seeking support over the past year. At the same time, nearly two-thirds of these organisations anticipate being forced to reduce or cut services due to rising costs and insufficient funding. Many members operate on tight budgets that leave them unable to absorb additional financial pressures such as the NIC increases, all while trying to address growing waiting lists for vital services. Unlike advice services directly provided by local authorities—where increased NIC costs will be reimbursed—our member organisations do not have the financial protections afforded to the public sector.
Operating with limited and often precarious funding, our members will struggle to absorb the additional costs imposed by the NIC increase. For example, Norfolk Community Law Service has calculated that the NIC increase will cost them more than £25,000 in 2025/26 alone. This is a significant financial burden for an organisation that already steps in to fill gaps left by legal aid cuts, providing vital support to over 4,500 people annually. Similarly, Age UK Norwich expects the NIC increase to add £4,000 to their annual costs, a burden that further stretches already limited resources and challenges their ability to maintain essential services.
Without targeted support, many of our members may be forced to make difficult choices: reducing staff numbers, cutting back on services, or closing entirely. This would leave vulnerable individuals without access to essential help, increasing demand on public services such as the NHS and local councils.
The exclusion of independent advice organisations from NIC reimbursement creates a critical disparity that could severely curtail their capacity to provide vital services. These organisations deliver services of equal importance, often stepping in to support individuals where public sector advice provision is unavailable or inadequate.
We urge you to extend NIC reimbursement to voluntary advice organisations, ensuring they can continue to deliver the vital services that protect and empower communities. AdviceUK has previously supported NCVO’s open letter to the Chancellor on this issue and stands ready to work with government to ensure that future policies fully reflect the indispensable contribution of independent advice organisations.
We would welcome the opportunity to discuss this issue further and explore practical solutions to mitigate the impact of the NIC increases on our members.
Thank you for your attention to this matter.
Yours sincerely,
Liz Bayram
Chief Executive
AdviceUK
