How to deal with the huge blow of increased employers NI

You won’t want to hear this, but I have to say it. 

Some of the financial woes we face in our sector are of our own making. We’re so committed to our cause that we will do whatever it takes to deliver. When we are low on money we will still strain every sinew to continue to serve the same number of people or deliver the same work as we did before. 

I get it. 

But in the long run, it kills us and prevents us from being able to deliver at all! 

For example, we ask a funder for £50k to do a piece of work. They offer us £25k. Do we write back to them and say thank you, we are grateful, however, it is important you know that with £50k we could have served 100 people, with £25k we can only reach 50. 

No, usually, we just take what they offer and do our best. And they carry on in sublime ignorance of the impact of their decision. 

There is absolutely no incentive for them to give what we ask as we don’t demonstrate to them the consequences of them not giving us what we asked for. So, no wonder they take us for granted. 

This is particularly pertinent right now as we face the absolute calamity that is the increase in employer national insurance contributions (NICs), which is estimated to cost the sector around £1.4 billion. 

We are all facing it. But don’t panic, here’s what you need to do:

Any funder who is currently funding you – write to them and tell them that you can no longer deliver what you promised because the costs, which you could not have anticipated, have gone up.

Show them with data what the impact will be. And don’t make it emotional – make it factual. For example, our money paid for two outreach workers. Now we can only afford one. With two we reach 50 people a week – with one it will be reduced to 25. Those 25 people will no longer have access to community support services and will be housebound. 

Ask them if they will cover the additional costs or agree to you reducing what you told them you would deliver with their money.  

With grants or contracts from state agencies, such as LA’s or ICBs etc do the same thing. Say you need to renegotiate the contract in the face of the government’s decision to increase costs. They either need to pay more or you will be forced to do less. 

You have to demonstrate consequences. And follow through on what you said, “We will have to stop delivering if the money isn’t there.”

I know how hard that is to do – but please trust me – if you don’t you run the very real risk of not being able to deliver anything at all – ever.