Jenny Rathbone MS

Chair, Equality and Social Justice Committee

Senedd Cymru

19 December 2024

Dear Ms Rathbone,

On behalf of Tenovus Cancer Care, I am writing to you in your capacity Chair of the Senedd’s Equality and Social Justice Committee. I wish to draw to your attention our response to the proposed increase in employer National Insurance Contributions (NIC) and share the impact that it will have on the charity and its ability to provide services to people affected by cancer across Wales.

We are deeply disappointed and frustrated at the lack of recognition of the devastating impact the increase in National Insurance Contributions will have on charities like Tenovus Cancer Care. We simply cannot sit back and take the hit.

This increase will very likely force charities to make extremely difficult decisions – cutting services, reducing workforce, or both. Such cutbacks would not only harm the vulnerable individuals we support but also the NHS, which cannot deliver the services we provide at the cost-efficiency we provide.

At Tenovus Cancer Care, we deliver essential services for people affected by cancer including counselling, nurse-led support, and benefits advice. This is provided free of charge, exclusively to the NHS. More than 10% of people diagnosed with cancer in Wales will use one of these vital services, that increases to nearly 20% in North Wales. Sadly, a third of those we support are end-of-life, facing their most difficult days.

We estimate this additional financial burden will cost us, at a minimum, a quarter of a million pounds (£250,000) annually. It’s equivalent to the cost of running our benefits advice service. In the last year, this service alone helped secure £4.1m worth of payments to 1,820 people with cancer across Wales.

It is a misconception that all charities are cushioned by government grants or contracts. For many, including us, operations rely almost entirely on charitable donations. While we absolutely want to pay our staff fairly and anticipated the living wage increases, the scale of this NIC rise is unsustainable in the context of a challenging fundraising environment.

We are a substantial employer, with 228 staff working across our 56 shops, head office, and out in communities across Wales. This decision also risks harming the foundational economy within the very communities we serve.

Despite the disproportionate impact of the pandemic and cost-of-living crisis on charities like ours, we received no bespoke support and were forced to make huge redundancies just to keep afloat. After working hard to recover, finally balance our budgets, and supporting public services, being told to absorb this increase is a bitter blow.

Therefore, we are calling for:

· The UK Government to reconsider the NIC increase for charities such as ours that provide direct support to the NHS from charitable funds and include us in exemptions as has been done for public sector organisations.

· Welsh political representatives to advocate for us – and for others in our situation - across the Welsh third sector, and appeal to the UK Government for urgent action to protect vital services that people rely on, often at time of personal crisis.

· The Welsh Government to mitigate the burden if UK exemptions are not forthcoming – an acknowledgment of the services we deliver free of charge to patients across Wales.

I trust that my contribution is shared amongst members of the Committee and is taken into consideration when the Committee considers the impact of the up and coming Budget on Wales.

I am happy and able to find the time to meet with you to discuss further.

Please contact me via alison.partridge@tenovuscancercare.org.uk to make arrangements or if require additional information.

Yours sincerely,

Judi Rhys MBE

Chief Executive