Chancellor of The Exchequer, Jeremy Hunt’s Spring Budget announcement on 6 March 2024 has been described as a “missed opportunity” with very few measures to help the sector.
Our Charity Insurance team at WRS Insurance Brokers have summarised the key findings for charities below.
Gift Aid Legislation Amendment: One concern addressed in the budget regarded the amendments to gift aid legislation in light of the impending Digital Markets, Competition, and Consumers Bill. This adjustment ensures that charities, particularly membership-based, can continue to claim gift aid on members’ subscriptions while adhering to the new bill’s requirements.
Investment in Medical Research: Chancellor Hunt’s commitment to allocate £45 million to the Medical Research Charities Early Career Researchers Support Fund into medical research into diseases such as dementia, cancer and epilepsy, including £3m for Cancer Research UK (CRUK).
Changes To Child Benefits: From April 2024 the government will raise the threshold for the High Income Child Benefit Charge to £60,000 taking 170,000 families out of paying this tax. The rate of the charge will also be halved so that Child Benefit is not repaid in full until you earn £80,000.
VAT Registration Threshold Increase: Charities stand to benefit from an increase in the VAT registration threshold from £85,000 to £90,000, potentially reducing tax burdens.
National Insurance Cuts: A welcome relief for workers emerged as Chancellor Hunt announced a 2% reduction in National Insurance contributions, translating to potential savings of £450 annually for the average worker. Additionally, self-employed individuals will benefit from a similar reduction, with further plans outlined for continued cuts in the future.
Debt Relief Measures: Acknowledging the financial burdens faced by many, particularly those in need, the Chancellor abolished the £90 charge for debt relief orders. Moreover, an extension of the repayment period for new loans from 12 to 24 months aims to alleviate the strain on individuals struggling with debt.
Household Support Fund Extension: The extension of the Household Support Fund, facilitating aid to families through local councils via food banks and warm spaces has been extended beyond 31st March and it set to continue to six months.
Fuel Duty Freeze: In a move to mitigate rising living costs, fuel duty will remain frozen at its current rate for the next 12 months, accompanied by an extension of a temporary 5p cut on fuel duty.
Additional Funding: Chancellor Hunt announced a £2.5bn funding boost for the NHS alongside a £3.4bn investment in NHS digitisation. Hunt also pledged £105m over the next four years to build 15 new special free schools.
About WRS
At WRS Insurance Brokers, we are specialists in Charity Insurance and our experienced team is passionate about the charitable sector. Our experience has taught us that one size certainly doesn’t fit all and that every charity and not-for-profit organisation faces its own unique risks.
WRS is part of the Benefact Group, a charity-owned, international family of financial services companies that gives all available profits to charity and good causes.