Employers' Contributions: Public Sector
The question
To ask the Chancellor of the Exchequer, pursuant to the Answer of 10 January 2025 to Question 20950 on Employers' Contributions: Public Sector, what progress she has made on estimating the assumed unit cost per (a) headcount and (b) FTE employee of the increase in National Insurance contributions on employers in the public sector.
Answered by James Murray
At the Autumn Budget the Chancellor set aside £4.7 billion of funding for departments in order to support them with the increased costs as a result of the rise in employer national insurance contributions.
This funding has been allocated to departments, with the Barnett formula applying in the usual way, which is in line with the approach taken under the previous Government’s Health and Social Care Levy. Updated departmental budgets for 2025/26 including allocations were published at the Spring Statement.
The Government also plans to publish individual departments’ allocations as part of Mains estimates.
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