Major charities are asking the Chancellor to abandon a tax grab that threatens to bring good causes to the brink of collapse.

Some of the country’s biggest charities have called on the Treasury to halt tax collections that threaten to push good causes to the brink of collapse.

The NSPCC and Crisis were among those calling on Chancellor Rachel Reeves to reconsider her decision amid fears new National Insurance contribution rules would have a “huge” impact on their finances.

Businesses will pay more in pensions to their workers, rising from 13.8% to 15%, collecting £25 billion a year, the Treasury announced on Wednesday. Employers will start paying tax on the wages of every employee earning above £5,000 – up from £9,100.

However, charities will not be spared from the tax rise – even if they operate public sector services that have been exempted.

Furious charity bosses said they would have to stop providing services, lay off staff or even close as a result.

Matt Downey, chief executive of homelessness charity Crisis, said: “The decision to increase National Insurance contributions to charities will impact our ability to support people who need us. With demand for our support at record levels and winter approaching, this is a critical time.

“We hope the chancellor will reconsider his decision.”

Sir Peter Wanless, chief executive of the NSPCC, said the tax rise would have a “major impact on the budgets of any charity that employs people”, adding: “Does anyone think about what impact this will have on the work of charities?”

“While the government has rightly recognized the burden that increased National Insurance bills will place on vital public services and has provided additional funding to government departments accordingly, it is disappointing that similar funding has not been extended to charities.

“This appears to fly in the face of the government’s previous commitment to working hand in hand with the charity sector to maximize the impact we can have.”

Debra Alcock Tyler, chief executive of Directorate for Social Change, which supports other charities, said: “The whole damn thing will fall apart if we don’t get people to appointments and rescue people from situations.

“Ultimately, we’re going to do the same job for less money. Where will we get the extra one percent? It doesn’t sound like much, but it’s huge.”

Katie Reid, head of policy and public affairs at parent organization Hospice UK, said: “Hospices are already under significant financial pressure. This makes it all the more important that the Government is committed to providing short-term emergency support to our sector.”

St Christopher’s Hospice in Sydenham, south-east London, said the changes would cost it an extra £450,000 a year, which could otherwise be used to fund nine specialist community nurses. John Vickers, the company’s chief financial officer, said: “This will cause concern for hospices across the country.”