Employers' Contributions: Wales
The question
To ask the Secretary of State for Wales, what assessment she has made of the potential impact of increases in employer National Insurance contributions on wages in Wales.
Answered by Jo Stevens
Raising the revenue required to fund public services and restore economic stability requires difficult decisions on tax, which is why we are asking employers to contribute more.
The changes broadly return NICs revenues as a proportion of GDP to the level they were before the previous government’s cuts to employee and self-employed NICs, but do so in a way that does not result in higher taxes in people’s payslips.
This Government has taken quick and sensible action to boost wages for millions of lower paid workers who are the backbone and future of our economy. Around 150,000 workers across Wales received a record pay rise through the UK Government’s increases to the living wage and minimum wage. For full time workers 21 and over, this will provide up to £1,400 a year more for these individuals and up to £2,500 a year more for full time workers between 18-20.
Real total wages have continually increased since this Labour Government was formed in July 2024, and are up 1.7% on the year for January 2025 to March 2025.
These increased incomes are set to boost financial stability for millions of families, improve spending power and deliver economic growth.
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