Local Government: Employers' Contributions
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to her guidance entitled Explanatory note on the National Insurance Contribution compensation 2025 to 2026, published on 18 December 2024, on what methodological basis the figure of £515 million was reached to help local authorities mitigate the additional impact of the increase in employer National Insurance contributions; and what assessment she has made of the potential implications for her Department's polices of representations from the Local Government Association on its estimate of (a) direct and (b) indirect costs for local government.
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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