A North Wales charity has revealed over 400 jobs and support for 140 disabled people hangs in the balance because of the country’s ongoing social care funding crisis.
For three decades the charity Anheddau – a not-for-profit based in North Wales – have provided support for adults with additional care needs in Gwynedd, Conwy, Anglesey, Denbighshire and Wrexham.
In a drastic turn of events, the organisation announced the funding provided by councils, which commission their services, no longer covers their operating costs.
Chief executive Claire Higgins explained that, for too long, Anheddau had subsidised these services, but now an additional £400,000 has been added to the annual wage bill.
‘From April this year, chancellor Rachel Reeves raised the rate of National Insurance Contributions (NICs) which employers have to pay for employees from 13.8% to 15%,’ Claire said. ‘In addition, the chancellor reduced the level at which employers have to start paying NICs from £9,000 to £5,100 per year.’
‘This financial burden coincided with the Welsh government raising the Real Living Wage rate – the minimum which employers are expected to pay employees – to £12.60 an hour. It’s a double whammy,’ Clare continued.
‘We anticipated and planned for staff pay rises, but the National Insurance contributions were a devastating blow. Finding £400,000 with little warning would be challenging for any business. For a small charity like Anheddau it is catastrophic.’
Unfortunately this experience isn’t exclusive to Anheddau. Cymryd Rhan – an organisation that was established 40 years ago – was forced to shut its doors in March 2025. The not-for-profit was based in Llanidloes and helped around 2,000 people in Flintshire, Wrexham, Ceredigion, Merthyr and Powys.
Claire added that if financial support isn’t granted soon, her organisation could face a similar fate.
‘Anheddau has an established reputation for excellence in enabling people to live more independently and confidently in their communities,’ she said. ‘In the past it has been asked to take over the contracts of providers not meeting quality standards.
‘However, if we cannot find a way through this financial crisis then it could spell disaster for the people we support and their families who depend on us on a daily basis.
‘The fact is that if we were not providing this service then the local authority would have to do it themselves in-house or commission private providers. I see no benefit in either option since the cost of re-provision will increase and costs will be passed on to the wider population. The whole situation is hugely disappointing.’
Image: Claire Higgins.
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