Public Sector: Employers' Contributions
The question
To ask the Chancellor of the Exchequer, pursuant to the Answer of 12 February 2025 to Question 28608 on Employers' Contributions: Public Sector, whether the funding provided will offset the full impact.
Answered by James Murray
At Autumn Budget 2024, the Government set aside funding to support the public sector with the additional cost of employer National Insurance Contributions. This support funding amounts to £4.7 billion in 2025-26, inclusive of Barnett consequentials.
This funding 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. This funding has since been allocated to departments and other public sector employers, with shares based on data covering headcount, wage and salary costs, 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 Mains estimates.
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