Training: Employers' Contributions
The question
To ask the Secretary of State for Education, if she will make an assessment of the potential impact of the proposed increase to employer's National Insurance contributions on the ability of independent training providers to provide skills development and workforce training.
Answered by Janet Daby
On 5 March 2025 the department gave details of 16 to 19 funding which meant that it will be spending over £400 million more on 16 to 19 education in the 2025/26 financial year. This represents over £100 million more than the £300 million announced at the Autumn Budget 2024 and aims to ensure enough funding is available given the very significant increase in student numbers and other pressures on the system. Further guidance on how 16 to 19 funding will work in the 2025/26 academic year can be found at: https://www.gov.uk/guidance/16-to-19-funding-information-for-2025-to-2026.
The government has agreed that public sector employers will receive support in recognition of the increase in their National Insurance contributions from April 2025. This does not include support for the private sector, including private sector firms contracted by public sector entities.
Independent training providers will benefit from the 3.78% increase to all the national funding rates for students on 16 to 19 study programmes and T Levels in the 2025/26 academic year.
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