Vulnerable young people are set to miss out on vital services as a direct result of the crippling National Insurance Contribution (NIC) tax hike for employers.

EveryYouth’s Network of Delivery Partners across the UK is set to lose £1.73m from collective budgets as the employer NIC changes come into effect this week.

This will affect the Network’s ability to help young people learn independent living skills and navigate the transition to adulthood. It will also make it more difficult to provide additional wrap-around support, addressing childhood trauma and educational deficits, which is funded by donors and is essential if we want our most disadvantaged young people to thrive.  

In a letter to Angela Rayner, EveryYouth CEO Nicholas Connolly called for youth homelessness services to be protected from the NI increase announced in the Budget and requested an urgent meeting with the Deputy Prime Minister.  

But in a letter to the National Council of Voluntary Organisations (NCVO), Chancellor Rachel Reeves confirmed the public sector would be exempt from the tax hike, but not charities. 

“It cannot be right that the overall increase in investment in public services results in the most vulnerable young people being penalised.” – Nicholas Connolly, EveryYouth CEO

She said “the government has committed to provide support for departments and other public sector employers for additional employer NICs costs only”. 

From April 6 employer NICs started at £5,000 instead of £9,100, and the contribution rate increased from 13.8% to 15%. This will equate to a £1.73m loss for EveryYouth, the equivalent of axing more than 60 frontline workers from the network’s government funded services. 

It could lead to hundreds of job losses from a sector Ms Rayner has already acknowledged is struggling to keep up with demand.  

Mr Connolly said: “The young people we support are some of the most disadvantaged in the country, and a very high proportion are care leavers. Many are neurodiverse and have faced discrimination due to their sexuality, gender identification, or race. It cannot be right that the overall increase in investment in public services results in the most vulnerable young people being penalised.  

“We call on you now to recognise this issue and work with relevant ministers and local authorities to ensure services for homeless young people are protected too.”

Read more on this in our story with the Independent.