Local Government: Employers' Contributions
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to his Department's explanatory note entitled, Employer National Insurance Contributions funding, published on 18 December 2024, for what reason the funding is being based on net current expenditure.
Answered by Jim McMahon
The additional £515 million made available by the government to compensate local government in England as a whole for the impact of changes to employer National Insurance contributions (NICs), has been determined based on a national assessment of the costs for directly employed staff across the public sector. We will confirm final positions on the methodology and approach to allocations following the conclusion of the consultation on the provisional settlement currently underway. Final allocations will be provided at the latest as part of the final local government finance settlement in early 2025.
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