Changes to National Insurance announced in the Budget could take £60m away from frontline homelessness services and threaten their future, charities have warned.

A total of 110 chief executives, in a letter to chancellor Rachel Reeves, warned the sector is facing “a very real threat to the homelessness services that are needed to provide the foundation for future strategic efforts.”

In last month’s Autumn Budget Reeves announced employer National Insurance contributions will go up to 15% from April 2025, while the threshold at which they start paying contributions will be lowered to £5,000.