Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate her Department has made of the (a) overall cost to businesses in the social care sector of the increase in employers National Insurance contributions and (b) average cost to each business in this sector.

A Tax Information and Impact Note that covers the Employer National Insurance changes was published by HMRC on 13 November.

The Government will provide support for departments and other public sector employers for additional Employer National Insurance costs. This does not include support for the private sector, including private sector firms contracted by central or local government.

This is the usual approach Government takes to supporting the public sector with additional Employer National Insurance contributions as was the case with the previous Government’s Health and Social Care Levy.

The government considered the cost pressures facing adult social care and wider local government spending as part of the Budget process in the usual way.

The government is providing a real-terms increase in core local government spending power of around 3.2% in 2025-26, including at least £600m of new grant funding provided to social care, which can be used to address the range of pressures facing the sector.