The NI changes are going to cost my organisation £1000 per employee

[flashbac]

The NI changes are going to cost my organisation on average £1000 per employee, The lowering of the threshold alone is going to cost around £600 extra per employee.

We are heavily regulated with fixed income. We're a not for profit. Our customers expectations are increasing. We are now most likely going to have to somehow reduce our headcount now, and payrises for April are going to be off the table.

Just shaking my head really. Our employees don't deserve this. Hard to see how this isn't a tax on jobs.

The lowering of the threshold also means employers have to pay for more workers, because part time salaries are now dragged into it.

A lot of people reading this won't care. All I can say is this NI increase will also affect you. just think about Local authorities, childcare providers and other services. Do you think it won't affect your Councils services/tax bills, to give one example?

(I'm not a Tory bot btw, before anyone starts accusing me of being one. I voted Remain, don't support the Tories at all, can't stand Boris and his cronies.)

I believe they've said the money is to be spent on buildings mtce, scanners and on reducing the waiting list via private sector doing operations, so increasing the current plans.

No mention of extra managers.

I think we need to raise taxes more to provide more services but I think raising employer NI is a really bad idea and as you said is a tax on employees. I think we’ll see lots of business and public sector trying to get more out of staff and redundancies/ not replacing people so rising unemployment

I wouldn't mind the extra taxes if I didn't believe the money will be wasted. The NHS doesn't need more funding, it needs reorganising. There are probably more bureaucrats than medical workers in it. Endless committees of inquiry taking years to come to conclusions and even then their recommendations aren't taken up. Immigration is in chaos which means more and more people having to be looked after. All the IT initiatives that end up not working properly. It all feels like a bottomless chasm which we have to pay for.

Same here - arts charity NFP, limited scope for income. I work in accounts and am extremely worried how we will get our budget over the line. Many of our casual work force are living wage (of course you could argue they should not be but it is a fact charity work is comparatively low paid for everyone) - this means we have a huge % increase in our wage bill. Last year was around 10% due to LW rising so much and this year it's 5% plus the NI. That's a huge swing in the cost of employing staff over such a short time frame. Our programme of activity spans years so we have invested and committed to projects where there is nothing we can do about changing the model, and our ACE funding is flat for 3 years.

But, taxes needed to go up and it wasn't going to be personal taxes, so it was pretty obvious it was going to be business taxes.

I've got to be honest I thought they would find more with different kinds of efficiencies, dividends and windfall taxes rather than the ER NI which is not progressive and known to have a very direct knock on to workers pay and jobs.

I guess it's just the sheer scale of income needed means nobody could escape.

I'm not cross with labour at all but I am worried for my organisation.

Have you seen this open letter from the ncvo website? https://www.ncvo.org.uk/news-and-insights/news-index/open-letter-chancellor-national-insurance/

The highest tax hike since 1993 wasn’t in the manifesto so you have a point

Labour are also going to give day 1 rights to employees to claim unfair dismissal. This won't affect the unscrupulous employers, who will continue to do what they want. Its employers like mine that will think twice before hiring, because of the amount of procedure and paperwork we will need to do, to ensure we dont get into bother. It only takes one bad apple of an employee to negatively affect a whole team and suck disproportionate amounts of manager time. To make it harder to dismiss a bad hire is going to be tricky. Its a double whammy really.

I think this was the expectation of a great number of Labour supporters.

This is an absolutely insane decision.

But they'll need extra managers to manage all these things and thag will have toncome out kf the budget

Will the extra billions given to the NHS cover their increased NI liabilities? I doubt it will.

According to dh you can still put new employees onto a 2 month temporary contract before deciding whether to employ them.

Perhaps a tax on profits?
I expected we would see the burden of the tax increases hitting businesses but the way this has been done unfairly penalises those businesses who rely on a large labour force such as social care providers and already operate on small margins.
A tech company that has a huge turnover and profits but a small workforce will be far less affected than a charity, hospice or care provider who will be forced to respond by cutting staff or holding back wage increases for already low paid workers.

https://www.nfuonline.com/updates-and-information/labour-has-no-intention-of-changing-apr-says-shadow-defra-secretary/

Any of us who worked/work in the NHS know how unrealistic this is. They could put 5 more scanners in every hospital in England and Wales (if there was space, which there isn't), but then what? They'd need more radiographers, more radiologists, more oncologists etc ad infinitum.

The public are easily impressed by more scanners etc which is why politicians say it, but the reality is so much more complex. The funding needs to go first to training more staff. Even if they started today, they won't have more radiologists until the 2030s. Additional radiographers won't be ready until towards the end of this parliament.Having appropriately qualified staff is the most important thing of all, that's what I want them to be investing in.

I can’t get my head around these posts, it’s like people operate in a completely alternative corporate environment.
Haven’t most people been working at organisations who have been constantly reducing headcount for years now!!? It’s completely pedestrian in 2024. My DB who has been a little unlucky has been made redundant twice in 2 years.

£1k per employee is a drop in the ocean compared to the volatility of the macro environment for the last 8 years

TBH OP I don’t know what you want out of your post - everyone who has posted facing similar issues (whether it not it’s a non-profit) has basically been told ‘tough shit’ and when we’ve said we’ll have to fire people to afford the increases we’ve been told our businesses must be crap. But you also need to consider that business rate tax is effectively going up - so that’s more money you’ll need to find (sorry)…

The increase in NI will cost my employer over £1,000 just for me. I hate to think what the total will be.

Fair enough, I didn't know they'd said that.

As per your other thread - in your case you need to raise your prices, you didn’t mention your businesses insanely low prices you didn’t in your posts until very late in just one of your posts about this.

highly likely OPs NFP is also carrying some dysfunction that could be addressed to compensate for the additional £1k per employees

It depends what you mean by "the NHS".

Those parts of the NHS that are in the public sector, the majority, will be exempt.

Private sector bodies which provide NHS services won't be.

See this article
https://www.google.com/amp/s/www.bbc.com/news/articles/cgl409gww1go.amp

NHS and public sector (so councils, among others) are exempt from the NI rise.

Sunak's government did announce a major long term recruitment and training drive last year, which hasn't got much attention but sounds like a step in the right direction, including a much needed increase in medical school places. But the problem is in the words "long term".
https://amp.theguardian.com/society/2023/jun/30/what-is-the-nhs-workforce-plan-and-what-has-been-the-reaction

I didn't know this so thanks. They need to extend this to charities and the third sector.

Nobody is going to apply for a 2 month contract unless very desperate or has limited skills or experience.