15-07-2025
Northern Ireland homelessness charities warn services could be cut after National Insurance increase
Homelessness charities are warning that some services might have to be reduced following April's hike to National Insurance which means employers now need to pay 15%.
This could result in additional costs running into the millions of pounds for the sector, according to its representative body.
As a result, it is calling on Stormont to provide financial support.
Mark Baillie from Homeless Connect, said: "This is just yet another challenge that the sector faces. And again, we are calling on and urging the Department for Communities, the Minister for Communities and the Executive to do everything in their power to ensure that these increased National Insurance contribution costs are mitigated.
"Because if they're not, there could be very serious consequences for people who are experiencing homelessness right now and for people who are on the margins."
These fears are echoed by a First Housing, a charity that employs more than 125 people across Northern Ireland.
One of the services it runs is a youth accommodation service in Londonderry known as Jefferson Court which houses 25 young people who are at risk of homelessness.
But over the year, the charity estimates that the National Insurance changes will add nearly £200,000 to its tax bill, which means it might have to reassess how it allocates its money to services such as Jefferson Court.
Eileen Best said: "If we weren't here, I believe that it would cost the public purse much, much more because our services impact on emergency services, the juvenile justice system, the police, and on A&E.
"All those services at the moment are stretched with their own budgets and it would become an even greater crisis."
The Department for Communities said: "Minister Lyons has repeatedly stressed the need to make the strategic shift to homelessness prevention.
"The Northern Ireland Housing Executive will now have a dedicated homeless prevention budget beginning with an additional £2.5million this year ring-fenced for the strategic prevention of homelessness.
"The minister also recently launched the £10m loan to acquire move on accommodation fund for homeless organisations to buy homes."
