Charity

‘Grave concerns’ over national insurance hike

Published

2 weeks ago

November 21, 2024

SENEDD Members expressed grave concerns about the impact of the UK Government’s national insurance tax hike on GPs, universities and charities in Wales.

Plaid Cymru leader Rhun ap Iorwerth warned the rise in employer national insurance contributions from 13.8% to 15% in April will have a disproportionate impact in Wales.

He told the Senedd: “Labour are quick to accuse others of fantasy economics whilst their own plans represent nightmare economics for thousands of employers and employees.”

Raising concerns about the impact on job creation and wages, he said employment levels are at their lowest for almost a decade – lower than anywhere else in the UK.

He accused Labour of breaking a manifesto pledge as he pointed to an Office for Budgetary Responsibility (OBR) assessment that three quarters of the cost will be passed to workers.

Leading a debate on November 20, Mr ap Iorwerth called on the UK Treasury to fully cover the added cost to public sector employers in Wales.

He said: “It’s not the private sector only … bearing the brunt. Charities, GPs, universities – sectors already feeling the squeeze, to say the very least – have been taken to the brink.”

He pointed to “eye-watering” bills of £90,000 for some GPs, with the British Medical Association warning some surgeries could close as a consequence.

Mr ap Iorwerth said mental health charity Plattform faces a £250,000 annual bill and Welsh universities, “already crippled by financial challenges”, will face significant further pressures.

Plaid Cymru’s motion urged Welsh ministers to press the UK Government to apply a wider definition of the public sector workforce to include universities, GPs and charities.

Peter Fox, the Conservatives’ shadow finance secretary, similarly accused Labour of breaking a manifesto commitment not to raise tax on working people.

The former council leader said: “Time and time again – the chancellor went on TV and made the claim, only to u-turn after they got into power.”

Mr Fox, who represents Monmouth, said even a 1% rise in employer national insurance contributions for the public sector would cost Welsh taxpayers an extra £100m.

He told the Senedd: “The UK Government has said that it will provide funding to cover the cost of national insurance contributions for those workers.

“However, this will still come out of the taxpayer’s pocket … ultimately it is the taxpayers who are going to pay for the Chancellor’s tax increase.”

Luke Fletcher, Plaid Cymru’s shadow economy secretary, warned the national insurance rise will be a drag on an “already anaemic” Welsh jobs market.

His colleague Sioned Williams, who also represents South Wales West, described the chancellor’s “back-of-a-fag-packet” plans as senseless.

She raised concerns about six-figure increases in tax bills for charities including Tenovus, Marie Curie, Citizens Advice Cymru and the Wastesavers Charitable Trust.

Cefin Campbell, Plaid’ Cymru’s shadow education secretary, said the national insurance increase will cost Welsh universities an estimated extra £20m a year.

The Mid and West Wales MS warned: “Without a shadow of a doubt, these additional costs could push our higher education institutions over the precipice.”

Labour’s Hefin David said difficult decisions had to be made to fill a £22bn “black hole” left by the Tories but he rejected Plaid Cymru claims of a return to austerity.

Dr David told the Senedd: “Yes, tough decisions have to be made but I think that in the longer term, this is to everyone’s benefit.”

Andrew RT Davies, leader of the Conservative opposition, disputed the “incorrect” £22bn figure, saying the OBR found a £9bn gap.

Replying to the debate, Mark Drakeford stressed that neither he nor the Welsh Government has responsibility for national insurance contributions.

Wales’ finance secretary, who was appointed in September, criticised “fantasy economics” from opposition members on the Plaid Cymru and Conservative benches.

Deriding the “politics of the playground”, he said: “Both of them are willing to spend money on almost anything; neither of them are willing to raise the money necessary from anyone.”

Prof Drakeford said the chancellor returned national insurance broadly to where it had been as a share of gross domestic product for 13 of the 14 Conservative years.

The former First Minister pointed out that the UK Government offset national insurance rises on small employers by more than doubling the employment allowance.

He told the debating chamber or Siambr: “If you want to pay for things, you have to find the money to do so. That is what the chancellor had to do. That is how we will get the money that will come to public services here in Wales.”

Senedd Members voted 25-19 against Plaid Cymru’s motion.

Charity

Insurer warns of growing risks for Pembrokeshire charities in 2025

Published

2 days ago

December 2, 2024

Tom Sinclair

CHARITIES in Pembrokeshire face a challenging year ahead, as new data from the Charity Commission highlights a steep decline in donations. In 2023, just 47% of people contributed to charity, down sharply from 62% in 2020. Rising operational costs and increasing demand for services are compounding the pressures on local organisations.

Ansvar Insurance, a specialist provider for the charity, not-for-profit, faith, and care sectors, has identified five major risks that charities may face in 2025. Alongside these risks, the insurer offers practical steps to help organisations navigate the challenges.

Mounting pressures for local charities
Adam Tier, Head of Underwriting at Ansvar, said:
“In 2025, charities will face higher operational costs, greater service demand, and ongoing financial pressures due to the cost-of-living crisis. Smaller, local charities are particularly vulnerable as resources are already stretched.”

Top five risks for 2025

1. Financial instability
Declining donations and increased costs, including rising utility bills and the living wage increase to £12.21 per hour, present significant challenges. Ansvar advises charities to adopt robust financial planning and explore alternative funding sources, such as corporate partnerships and grants.

2. Increased demand for services
Organisations supporting foodbanks, hospices, and mental health services are reporting heightened demand. While government funding for social care and healthcare may provide some relief, local charities should collaborate with councils and other groups to manage this strain.

3. Declining income from donations
Changes to Inheritance Tax and Capital Gains Tax could encourage legacy giving. To counteract falling donation levels, Ansvar recommends enhancing donor engagement strategies to build sustainable support networks.

4. Cybersecurity threats
Cybercrime continues to target charities, with a third of respondents in the Government’s 2024 Cyber Security Breaches Survey reporting attacks. Ansvar urges charities to implement robust cybersecurity measures, provide staff training on safe practices, and ensure their insurance policies cover cyber threats.

5. Regulatory and compliance challenges
New charity tax regulations, set to take effect in April 2026, and stricter data protection rules under the Data Protection and Digital Information Bill (DPDI), will increase compliance requirements. Charities should regularly review their strategies to avoid financial and reputational damage.

Proactive steps for resilience
Adam Tier emphasised the importance of forward planning:
“It’s vital that charities take proactive steps to ensure their resilience, from reviewing financial strategies to securing adequate insurance cover. These actions are essential for protecting against emerging risks and continuing to make a difference in their communities.”

Ansvar, part of the Benefact Group, is committed to supporting charities through expert advice and tailored financial services. The Benefact Group is the UK’s third-largest corporate donor, further showcasing its dedication to empowering charitable organisations.

Charity

Clean sweep for Pembrokeshire pupils as FUW announce Christmas card winners

Published

5 days ago

November 29, 2024

Richard Lewis

TWO SCHOOL pupils from Pembrokeshire came out on top as the Farmers’ Union of Wales (FUW) has revealed the winning designs for its Christmas card design competition.

Children from primary schools across Wales had been invited to submit a farming themed Christmas card design in aid of Wales Air Ambulance, the FUW’s current Presidential charity.

The competition was split into two categories – English and Welsh designs. The English category was won by Will Smith, 10 years old, from Roch Community School, Haverfordwest. The Welsh category was won by Keira Lewis, 9 years old, from Narberth CP School, Pembrokeshire.

FUW President Ian Rickman said: “The competition was a roaring success once again and has attracted hundreds of entries from across Wales. The standard was very high and presented the judges with a tough task when it came to choosing the winners.

“I would like to thank every single child who entered the competition and to tell them that without their participation the contest would not have been such a success. I would also like to express my gratitude to the staff at the schools up and down the country that assisted the FUW in the running of the competition.

“It gave children in urban and rural areas of Wales an opportunity to connect with the farming industry and express their thoughts in a creative and colourful way. I believe it is vital that we as farmers maintain a strong link with young people so that they understand the way that food is produced in this country.”

The cards can be purchased either from the FUW’s head office by calling 01970 820820 or from respective FUW county offices.

Charity

Pembrokeshire Agricultural Society donate £1,400 to all-Wales charity

Published

1 week ago

November 27, 2024

Tom Sinclair

WALES AIR AMBULANCE has continued to benefit from being the chosen charity of Pembrokeshire Agricultural Society’s president Adam Thorne.

Throughout the year the society has come together to raise much-needed funds for the Wales Air Ambulance.

Adam chose the Wales Air Ambulance Charity because of how valuable the service is to the rural and farming community in West Wales.

Following a successful harvest festival service and pre-Pembrokeshire County Show service, donations were made towards the charity of £1,400.

Wales Air Ambulance is consultant-led, taking hospital-standard treatments to the patient and, if required, transferring them directly to the most appropriate hospital for their illness or injury. For the patient, this can mean hours saved when compared to standard care and is proven to greatly improve survival and early recovery.

This advanced critical care includes the ability to administer anaesthesia, deliver blood transfusions and conduct minor operations, all at the scene of an incident.

As a pan-Wales service, its dedicated crews, regardless of where they are based, will travel the length and breadth of the country to deliver emergency lifesaving care.

The Wales Air Ambulance needs to raise £11.2 million every ensure to keep its helicopters in the air and its rapid response vehicles on the road.

Pembrokeshire Agricultural Society’s fundraising journey will continue, with a carol concert on 16 December and a luncheon in February.

Mike May, the Charity’s Regional Fundraising Manager for West Wales said: “Firstly a huge thank you to President Adam Thorne for picking our Charity as Pembrokeshire Agricultural Society’s Charity of the Year. Thank you to everyone who has helped to raise the funds and will continue to assist with fundraising events for Pembrokeshire Agricultural Society.

“The Charity relies on donations, like these to be able to continue to provide our lifesaving service for the people of Wales. We hope the up and coming concert and luncheon is just as successful as their previous fundraisers.”