Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 16 December 2024 to Question 19620 on Public Expenditure: Northern Ireland, if she will increase funding to Northern Ireland for the additional cost associated with changes to Employer National Insurance Contributions in the context of the higher proportion of public sector employees.

The UK Government has agreed to provide funding to the public sector to support them with the additional costs associated with changes to employer National Insurance Contributions policy.

The Northern Ireland Executive will receive funding through the Barnett formula for any additional support provided to UK Government departments in 2025-26 as a result of this policy change. This is the normal operation of the funding arrangements for the devolved governments as set out in the Statement of Funding Policy.

The Interim Fiscal Framework agreed by the UK Government and the Northern Ireland Executive recognises that Northern Ireland has a higher level of relative need compared to equivalent UK Government spending in the rest of the UK. A 24% needs-based factor is now included in the Barnett Formula for the Northern Ireland Executive, and the Executive is receiving over 24% more per person than equivalent UK Government spending in 2024-25 and 2025-26, including the 2024 restoration financial package.