TaxCorporate TaxNo special NI grants for hospices

No special NI grants for hospices

Paymaster general Dawn Primarolo has brushed aside calls for special grants to hospices and other voluntary bodies working in the health sector to compensate for increased costs caused by the 1% increase in national insurance contributions.

Link: Employers face hike in NI

She said the net effect would be a 7% average increase in pay bills and argued: ‘All employers, including those in the voluntary sector, have an interest in an efficient and effective NHS and one that is properly funded.’

She said the increase would raise £40bn a year extra for the NHS and said it was ‘breathtaking’ that Tory MPs should ‘continue to ask for more money’ while proposing cuts.

She was responding in the Commons to East Worthing and Shoreham Tory Tim Loughton who claimed hospices alone would take a £2m hit from higher NICs which would also particularly affect bodies like the Alzheimer’s Society since NHS funding for voluntary bodies was shrinking.

Tiverton and Honiton Tory Angela Browning said local authorities were cutting their own contracts to Age Concern and many mental health bodies because they could only afford to commission statutory packages of support.

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