Anheddau shares struggles in wake of employer NIC changes

Rhyl Journal

5 days ago

Anheddau, which supports adults with autism, learning disabilities, and other needs, uses funding provided by the county councils which commission its services, but it also subsidises those services itself.
Now, the charity's annual wage bill has had an extra £400,000 added to it.
Chief executive Claire Higgins said: "From April this year, Chancellor Rachel Reeves raised the rate of NICs which employers have to pay for employees from 13.8 per cent to 15 per cent.
"In addition, the Chancellor reduced the level at which employers have to start paying NICs from £9,000 to £5,100 per year.
"This financial burden coincided with the Welsh Government raising the Real Living Wage rate – the minimum which employers are expected to pay employees – to £12.60 an hour.
"It is a double whammy.
"We anticipated and planned for staff pay rises but the NICs were a devastating blow.
"Finding £400,000 with little warning would be challenging for any business.
"For a small charity like Anheddau it is catastrophic.
"We have been supporting people with autism, learning disabilities, mental health, and other needs for more than 35 years.
"The fact is that if we were not providing this service then the local authority would have to do it themselves in-house or commission private providers.
"I see no benefit in either option since the cost of re-provision will increase and costs will be passed on to the wider population.
"The whole situation is hugely disappointing.
"If the local authorities agreed to pay for the extra NICs, this would require each to increase Anheddau's funding to 8 per cent since our costs have risen by 11 per cent.
"We have made a compelling case to them to do so but, so far, most of them have offered less than half of this.
"Denbighshire is reconsidering its original rise of only 4.3 per cent and Ynys Môn has revised its offer from 4.2 per cent to 5.8 per cent, which is still too low."
Cymryd Rhan, another charitable organisation, folded in March.
The Llanidloes-based organisation provided support for about 2,000 people in Flintshire, Wrexham, Ceredigion, Merthyr, and Powys.
Its board concluded that "closure was its only option because the sums didn't add up," in the words of a third party spokesperson.
Mario Kreft, chair of Care Forum Wales, which represents hundreds of care homes, nursing homes, and other independent health and social care providers across Wales, warned of the possibility of "history repeating itself."