THE increase in employer National Insurance Contributions (NICs) will wipe out some essential services for vulnerable older people, Age UK says.

A survey by the charity, released today, estimates that the policy will cost its local groups £6.27 million this year, prompting staff cuts, increased charges on paid-for services and ultimately the closure of some services if they can no longer balance the books.

Employer NICs will rise from 13.8 per cent to 15 per cent from April.

Age UK is calling on the government to make more financial help available to charities so that they can continue to support vulnerable communities.

The group’s Wirral branch told researchers they are “faced with making some radical decisions about our future,” while Age Cymru Gwent said: “If this is to carry on year on year it’s difficult to see how survival for any charity is possible.

“What will happen to older people as more and more Age UK charities fall by the wayside, I dread to think.”

Age UK chief executive Paul Farmer said: “At a time when the government is saying it wants to work more closely with charities, and when the public demand for our services is higher than it has ever been before, it’s deeply frustrating that the changes… are undermining our ability to support vulnerable older people and their families and communities.  

“If we were truly acting in response to the needs we see we would be opening many more services, especially in areas with high levels of deprivation and demand.”

The Treasury was approached for comment.