Domestic violence refuges may be forced to shut their doors as a result of Rachel Reeves’s Budget tax raid, a leading charity has warned.
Women’s Aid said the rise in employers’ National Insurance (NI) contributions meant “life-saving services” could be axed, putting children at heightened risk of abuse.
The warning comes amid anger over Labour’s response to the grooming scandal, many victims of which have been supported by charity services.
In a briefing note to MPs, Women’s Aid said the Chancellor’s tax rises would wipe out up to 100 per cent of the money they received from Gift Aid.
The charity said: “The recent autumn Budget delivered a major blow to an already chronically under-funded specialist domestic abuse sector which is experiencing increased demand.
“The lack of new investment in the specialist domestic abuse sector in the autumn Budget, coupled with the minimum wage rise and the increase in employers’ contributions for National Insurance, puts them further at risk of needing to make redundancies and closing their life-saving services – putting local women and children at risk.”
Women’s Aid, an umbrella organisation representing more than 175 charities that tackle violence against women and girls (VAWG), said the rise in NI would cost its members upwards of £8,000 a year for the smallest organisations and up to £187,000 for the largest.
It said Ms Reeves should “address these concerns” by ordering an exemption for groups providing specialist VAWG services.
Joe Robertson, a Conservative MP, said he feared more women would be at risk as a result of the tax rise – Laurie Noble
Joe Robertson, the Tory MP for Isle of Wight East, warned that the “punitive tax hike” would have a “devastating impact” on victims.
He said: “The growing discussions around a potential inquiry into the Government’s handling of grooming gangs across the UK have rightly renewed focus on reducing violence against women and girls and improving overall outcomes.
“By increasing NI contributions, Labour is imposing crippling costs on women’s charities like Refuge, Women’s Aid, and Rape Crisis – costs that, in many cases, will almost entirely offset the support they receive through Gift Aid.
“This will force these vital organisations to scale back the critical services they provide, which is often the only support available to some of the most vulnerable people in our communities.”
The MP, who led a recent Commons debate about the impact of the NI raid on charities, added: “Labour campaigned on a manifesto that promised to tackle violence against women and girls, but without the indispensable work of these charities, achieving that goal will become far more difficult, potentially causing more women to be at risk of harm.”
Sarah Dyke, a Liberal Democrat MP, said one centre in her Somerset constituency which provides services to domestic abuse survivors was facing a £40,000 increase in its wage bill.
She told the Commons: “They’ll have to cancel any pay increase and they’ll have to operate at a reduced capacity from April. The Government must rethink the changes.”
Sorcha Eastwood, the Alliance Party MP for Lagan Valley in Northern Ireland, also urged the Chancellor to reconsider.
She said: “If the Government are serious about tackling the issue of violence against women and girls, surely this increase flies in the face of everything we’re trying to achieve.”