Employers' Contributions: Employment
The question
To ask the Chancellor of the Exchequer, what impact assessment she has undertaken on the potential impact of the planned increase in employers' National Insurance contributions on levels of employment.
Answered by James Murray
The Office for Budget Responsibility’s October 2024 Economic and Fiscal Outlook expects that the Employer National Insurance Contributions package will lead to a reduction in the participation rate by 0.1 per cent from 2025-26 onwards. Overall, once the impact of all the Budget measures are taken into consideration, the OBR expect the employment level to increase from 33.1 million in 2024 to 34.3 million in 2029.
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