Housing Associations: Employers' Contributions
The question
To ask the Secretary of State for Housing, Communities and Local Government, what assessment she has made of the potential impact of increased employer National Insurance contributions, as announced in the Autumn Budget 2024, on (a) the housing association sector and (b) the capacity of housing associations to increase levels of social housing building.
Answered by Matthew Pennycook
Restoring stability and fixing the foundations of our economy are the best things we can do to support growth. Tax rises need to play a part to fund public services and to invest in rebuilding Britain – and this includes investment in much needed new social and affordable housing.
At the Budget, the Chancellor set out details of an immediate one-year cash injection of £500 million to top up the existing Affordable Homes Programme which will deliver up to 5,000 new social and affordable homes. This comes ahead of the multi-year Spending Review next spring, where the government will set out details of new investment to succeed the current Affordable Homes Programme.
The government recognises that housing associations and councils need support to build their capacity and make a greater contribution to affordable housing supply. We are consulting on a new 5-year social housing rent settlement to give housing associations and other providers the certainty they need to invest in new social housing. We will be carefully considering all responses to that consultation.
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