Employers' Contributions: Government Departments
The question
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of proposed increases in employer's national insurance contributions on future trends in the cost to the public purse of Government contracts with private sector companies.
Answered by James Murray
At the Autumn Budget, the Chancellor announced that the rate of Employer National Insurance contributions will increase from 13.8% to 15% from 6 April 2025. In order to raise the revenue required to fund public services and restore economic stability, difficult decisions need to be taken on tax, which is why the Government is asking employers to contribute more.
The Chancellor also set out, at the Autumn Budget, the departmental spending allocations for 2024-25 and 2025-26. Departmental allocations for future years will be set out at the next phase of the Spending Review. The responsibility for prioritising these budgets effectively and making assessments on the costs of procurement rests with contracting authorities.
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