HAVENS hospices has revealed rising national insurance contributions and increases in the living wage will cost the charity almost £1million and put future expansion at risk.

Bosses at Havens hospices, which supports both Fair Havens in Southend and Little Havens in Thundersley, fear they will be facing an uphill challenge following the Government’s plan to increase employers’ national insurance contributions.

The charity is reliant on donations and charity shop sales to provide vital palliative care and receives just 29 per cent of its funding from NHS commissioners.

However, the Labour Government’s changes to National Insurance will leave the charity forking out an additional £368,000, while the rise in National Living Wage will cost an extra £500,000.

Havens, as well as Southend homeless charity Harp, have backed calls for non-profit organisations to be given an exemption to ease the growing pressure they face.

“Like other charities, Havens hospices will not be exempt from the National Insurance increases, which will cost the charity an additional £368,000,” Havens hospices’ chief executive, Steve Smith said.

“Along with this, the uplifts in the National Living Wage and matching pay awards with the NHS will cost us around an additional £500,000 each year. This is a mostly unbudgeted cost, which is significant for a charity of our size and will have a long-term impact on our ability to offer more services.”

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Harp, Southend’s largest homelessness charity, has written to Labour MPs Bayo Alaba and David Burton-Sampson to plead for help as “demand continues to rise”.

“Like many charities, Harp is concerned about the impact of the Employers’ National Insurance hike next year. Harp already relies on voluntary and charitable donations for about 40 per cent of our income, and this increase will leave us facing difficult choices,” said a spokesperson.

“Unfortunately, the demand for our services is continually increasing. As a result, we have written to our MPs to advocate for greater support for the homelessness sector.”

Shadow culture secretary, Stuart Andrew, said the Government’s “charity tax” will cost the charitable sector £1.4 billion, and called for an impact assessment.