Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she plans to provide (a) grants and (b) compensation payments to mitigate the impact of proposed changes to employer National Insurance contributions to (i) public sector workers and (ii) (A) drivers and (B) passenger assistants who provide transportation for school children with special educational needs.

The Government will provide support for departments and other public sector employers for additional Employer National Insurance Contributions costs. This funding will be allocated to departments, with the Barnett formula applying in the usual way. This is in line with the approach taken under the previous Government’s Health and Social Care Levy. Details of the funding set aside for 2025-26, including its allocation, will be published in due course.

Local authorities are responsible for arranging home to school transport for children with special educational needs, and deliver this through both in-house services and a range of external providers. As such, the Government does not hold central estimates of the impact that the increase in Employer National Insurance Contributions may have on the cost of home to school travel to local authorities. Officials engage regularly with local authorities to understand the challenges they face across the services they deliver.