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Employers' Contributions: Wales

Asked by Ben LakePlaid CymruTreasuryTabled Answered 11 November 2025UIN 87820

The question

To ask the Chancellor of the Exchequer, whether future compensation funding provided to the Welsh Government for increased National Insurance contributions costs for the public sector in Wales will cover this cost in full.

Answered by James Murray

The Welsh Government’s budget is growing in real terms between 2024-25 and 2028-29 and their Spending Review settlement is the largest in real terms since devolution in 1998. At Autumn Budget 2024, the Chancellor agreed to provide funding to the public sector to support with the changes to employer National Insurance.

The devolved governments received funding through the Barnett formula in 2025-26, including on this support. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy.

The current Welsh Government Spending Review settlement is the largest settlement in real terms of any since devolution.

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