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Local Government: Employers' Contributions

Asked by David SimmondsConservativeMinistry of Housing, Communities and Local GovernmentTabled Answered 5 September 2025UIN 71485

The question

To ask the Secretary of State for Housing, Communities and Local Government, whether councils will receive compensatory payments for increases in employer National Insurance contributions in (a) 2026-27 and (b) 2027-28.

Answered by Jim McMahon

The government provided an additional £515 million for local government in 2025-26 to manage the impact of changes to employer National Insurance Contributions. The recent Spending Review provides over £5 billion of new grant funding over the next three years for local services that communities rely on. This includes £3.4 billion of new grant funding through the Local Government Finance Settlement within financial years 2026-27 to 2028-29.

The government will bring forward its proposals for 2026-27, 2027-28 and 2028-29 through the provisional Local Government Finance Settlement later this year.

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