Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, with reference to the publication entitled Explanatory note on the National Insurance Contribution compensation 2025 to 2026, published 18 December 2024, for what reason the allocation was not calculated using published local authority payroll data.

The government has announced an additional £515 million of support for local government, including Mayoral Combined Authorities and Fire and Rescue Authorities, specifically to manage the impact of changes to employer NICs announced at the Autumn Budget.

Additional funding made available to compensate local government as a whole for the impact of changes to employer NICs has been determined based on a national assessment of the costs for directly employed staff across the public sector.

We propose to allocate the £515 million between local authorities in England based on their shares of total relevant net current expenditure. We have published a methodology note, explaining the data this funding is based upon, to assist councils with their financial planning.

The government will confirm final positions on methodology and approach to allocations as soon as possible now that the consultation on the provisional settlement has closed. We are continuing to engage with local government on their queries regarding the allocation of this additional funding.