Special Educational Needs: Employers' Contributions
The question
To ask the Chancellor of the Exchequer, what recent representations she has received (a) directly and (b) via other Departments from the Special Educational Needs and Disability Transport Operators Group on the potential inclusion of (i) drivers and (ii) passenger assistants in any (A) grant and (B) compensation scheme to offset the impact of changes in employer national insurance contributions; and if she will include this cohort in any such scheme.
Answered by James Murray
The government will provide support for departments and other public sector employers for additional employer National Insurance contributions (NICs) costs only. This funding will be allocated to departments, with the Barnett formula applying in the usual way. This is the usual approach the Government takes to supporting the public sector with additional employer NICs costs, as was the case with the previous Government’s Health and Social Care Levy.
This does not include support for the private sector, including private sector firms contracted by central/local government. For private sector organisations that contract with local or central government, the impact of tax changes would be taken into account along with all other changes to their cost base in the usual way through contract negotiations.
The definition of who is in scope as a public sector employee is based on Office of National Statistics classification of the entity paying employer NICs. This applies to employees who are directly employed by the public sector, but not, for example, where services are contracted out. The public sector comprises central government, local government and public corporations.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →