The Chief Executive of St Helena fears changes to employers’ rate of National Insurance, combined with above inflation increase to the national living wage, will create a significant cost pressure on its already struggling finances.

The charity, which supports more than 4,200 people across north east Essex who face incurable illness and bereavement each year, is asking the Treasury for the reimbursement of National Insurance set out for the public sector, to be extended to the many voluntary and community organisations and social enterprises that are vital to the quality of life and death in communities up and down the country. 

Mark Jarman-Howe, Chief Executive of St Helena, said:

“The changes announced will in effect be a tax on hospice care. 

“The Budget announcement on changes to the employers’ rate of National Insurance and thresholds is deeply worrying for St Helena, and no doubt for colleagues in the wider hospice, charity and social enterprise sectors.

“Combined with the above inflation increase to the national living wage, it will create a significant cost pressure on already struggling charities and social enterprises. 

“As NCVO succinctly put it ‘these rising costs will intensify the “triple squeeze” charities face from increasing costs, reduced funding, and higher demand.’

“For St Helena, the combined impact will be at the very least £350k on next year's hospice budget - the equivalent of running St Helena for a week.

“This estimate is expected to rise once we finish working through the impact on our trading subsidiaries that provide vital income to help us subsidise the NHS. We will of course also need to consider uplifts to maintain a small differential for staff in roles where the market rate is just above the national living wage.

“We are already having to absorb an unfunded 5.5% uplift, which our staff fully deserve, to match this year's Agenda for Change award. This is after years of below inflation uplifts in our local NHS funding. 

“NHS contribution to St Helena’s total income fell to 20% this financial year, while demand for hospice services continues to increase.

“I’m also asking the local and national NHS to make sure hospices finally receive a real terms uplift in their grants next year as a down payment on the equitable funding long-term settlement that is long overdue for hospice, palliative and end of life care.

“In the meantime, I would like to express a heartfelt thank you to all the individuals and businesses helping their local charities and hospices to continue providing their vital support. We're grateful for your continuing support.”