PARLIAMENTARY WRITTEN QUESTION
(13 March 2025)

To ask the Secretary of State for Housing, Communities and Local Government, pursuant to the Answer of 19 February 2025 to Question 30736 on Local Government: Employers' Contributions and with reference to paragraph 5.48 of Bedford Borough Council Executive's report entitled General Fund Revenue Budget 2025/2026, dated 22 January 2025, and paragraph 1.5.3 of Central Bedfordshire Council's report entitled Budget Report 2025/26 to 2028/29, dated December 2024, for what reasons the additional funding for employer National Insurance contributions paid to (a) Bedford Borough Council is £500,000 less than the estimated total cost for directly employed employees and (b) Central Bedfordshire Council is £1.2m less than the estimated additional cost for Central Bedfordshire Council staff.

Asked by:
Blake Stephenson (Conservative)

Additional funding for employer National Insurance contributions (NICs) has been determined based on a national assessment of the costs for directly employed staff. The grant distribution methodology has been published in an explanatory note on the government website: https://www.gov.uk/government/publications/updated-explanatory-note-on-the-employer-national-insurance-contribution-grant-2025-to-2026.

We recognise the challenges that local authorities are facing as demand increases for critical services. That is why the government is providing an additional £2 billion of grant funding through the Settlement, which includes £502 million of additional grant funding to manage the impact of employer NICs changes on council budgets, and £13 million for combined authorities, totalling £515 million. The final Settlement for 2025-26 makes available over £69 billion for local government, which is a 6.8% cash terms increase in councils’ Core Spending Power on 2024-25.

Answered by:
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