Responding to the National Insurance Contribution threshold changes and the threat to supported housing schemes

In the Autumn Budget, the government announced changes to the National Insurance Contribution (NIC) threshold, a change which is deeply worrying for supported and older person’s housing providers. Changes will affect the financial viability of current schemes, and future plans to develop much-needed new homes for those in our society who need them the most.

With our research earlier in the year showing nearly one in three providers were forced to close supported housing services between 2023-4, we know that many specialist housing providers will be facing difficult decisions about closing services.

Our response so far

At the NHF, we’ve been gathering evidence and speaking to our members providing vital supported and older persons’ housing, about how the changes to employer National Insurance Contributions (NICs) will affect them.

We’ve written to the Chancellor of the Exchequer Rachel Reeves MP with this crucial evidence from our members. In the letter, NHF Chief Executive Kate Henderson raised serious concerns that the NIC changes would increase staff costs and risk redundancies, ultimately putting specialist housing services at risk and increasing pressure on public services like the NHS.

We asked that the government consider an exemption for social care and housing-related support services funded by local authorities or the NHS, alongside ring-fenced support funding for local authorities as part of the Spending Review and a long-term financial plan for supported housing services.

The NHF also joined the sector in expressing concern about the impact on homelessness services, supporting an NCVO letter and a letter written by Homeless Link and signed by St Mungos, Crisis and other homelessness organisations and housing associations.

How you can help

Over the coming weeks and months, we will continue to engage with the government on this issue. We’ll also be making the case for a sustainable, long-term plan for supported and older person’s housing finances in the Spending Review. We’re calling for:

• A commitment to long-term, ring-fenced and increased funding for housing-related support at least £1.6bn per year to ensure the continued viability of vital supported housing provision.
• Funding to integrate health, social care and housing and deliver supported housing strategically.
• A commitment to at least 180,000 more supported homes by 2040, through improved, more flexible grant funding to deliver supported housing, within a stable long-term rent settlement that must also cover the actual costs of delivering supported housing.

To help our members providing specialist housing services with their political engagement work, our public affairs team have put together a template letter to write to your MPs and highlight concerns about the NIC rises, ask MPs to raise the issue in Parliament and to visit one of your schemes to see the vital work you do firsthand.

If you would like support with this, or receive a positive reply to your letter please email our Public Affairs Officer Ade Bakare.

In the run up to the Spending Review, expected in spring next year, we’ll be helping supported, homelessness and older person’s housing providers call for more and better funding and a sustainable policy landscape.