Schools: Transport
The question
To ask the Secretary of State for Education, if she will make an estimate of the potential impact of the planned increase in employer National Insurance on the cost of home-to-school transport.
Answered by Catherine McKinnell
At the Autumn Budget 2024, my right hon. Friend, the Chancellor of the Exchequer took difficult decisions in order to restore economic and fiscal stability, which included increasing Employer National Insurance Contributions from April 2025. Working people’s living standards were protected by raising the National Living Wage, keeping bus fares down, and not increasing income tax, employee national insurance or VAT.
Local authorities are responsible for arranging home-to-school transport and deliver this through both in-house services and a range of external providers, as such the department holds no central assessment of Employer National Insurance Contributions. Departmental officials engage regularly with local authorities to understand the challenges they face across the services they deliver.
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