Employers' Contributions: Public Sector
The question
To ask the Chancellor of the Exchequer, what methodology her Department used to calculate the allowance for public sector bodies for changes to employer National Insurance contributions.
Answered by Darren Jones
The Government will provide support for departments and other public sector employers for additional Employer National Insurance Contributions costs.
The amount of public sector support was based on an estimate of the proportion of employer NICs receipts paid by public sector organisations, using the Office for National Statistics (ONS) classification of the public sector boundary. The Treasury routinely uses the Office for National Statistics (ONS) classification of the public sector boundary, for example in relation to public sector spending, public sector borrowing and public sector debt.
This is in line with the approach taken under the previous Government’s Health and Social Care Levy.
This funding will be allocated to departments, with the Barnett formula applying in the usual way.
The Government plans to publish the allocations for departments alongside departmental budgets for 2025/26 as part of Main estimates.
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