Tenovus, a leading Welsh cancer care charity, has warned it faces a “devastating” £250,000 annual increase in National Insurance (NI) contributions. The charity is calling on UK ministers to reconsider the hike or for Welsh ministers to provide mitigation as part of their budget planning.
In a letter to the Senedd’s Finance Committee, Tenovus CEO Judi Rhys highlighted the unsustainable financial burden, which threatens the charity’s ability to provide free counseling, nurse-led support, and benefits advice to NHS patients. She described the increase as particularly challenging in the current “difficult fundraising environment.”
Budget Pressures Impacting Charities and Councils
The rise in NI contributions is part of broader financial challenges across Wales, with public sector employers expected to cover the costs using additional UK government funding. However, this funding does not extend to charities or private organizations providing public sector services, leaving groups like Tenovus without crucial support.
The Welsh Local Government Association (WLGA) has also raised concerns about funding shortfalls. It estimates a funding gap of £563 million across Wales’ 22 councils by 2025-26, equivalent to a 26% increase in council tax or the loss of over 14,000 jobs. Despite a £253 million cash boost in the draft Welsh government budget, councils claim it is less than half of what they need to maintain current services.
Charity and Voluntary Sector Sound Alarms
The Welsh Council for Voluntary Action (WCVA) described the current funding trajectory as an “alarming direction of travel,” criticizing the expectation for voluntary groups to maintain frontline services without sufficient resources or decision-making input. Inflation and uncertainty have led to increased staff turnover as workers seek better pay and job security elsewhere.
Tenovus is particularly concerned about the National Insurance increase, estimating it will cost the charity at least £250,000 annually. Rhys emphasized, “While we absolutely want to pay our staff fairly and anticipated living wage increases, the scale of this NIC rise is unsustainable.”
Political Standoff Over Welsh Budget
The Welsh government’s draft budget, unveiled in December, allocated an additional £600 million annually for the NHS as part of £1.5 billion in public service funding. However, Labour ministers must strike a deal with another political party for the budget to pass in March.
Plaid Cymru leader Rhun ap Iorwerth has called for securing more than £4 billion in consequential funding for Wales from England’s HS2 project, but this move depends on the UK government, which has previously ruled it out.
Welsh Liberal Democrat Jane Dodds may become a key player, advocating for increased investment in childcare and social care. A deal with Welsh Conservatives has been ruled out entirely.
As budget negotiations continue, charities like Tenovus are left waiting for solutions to what they see as an existential financial crisis.
