Your suggestion would cripple charities with greatly increased labour costs and be detrimental to the care of the disabled and other vulnerable groups.
I'm with Voland's, in principle, although not necessarily on the specific figures. There are ways of implementing this that could enable (say) charities to be exempt, and with the Charities Commission given powers to suspend this for specific charities if they find that any are abusing the exemption. Charities have always had different tax arrangements, so this isn't a big deal.