Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the increase in employer National Insurance contributions on transport companies who provide services for children with Special Educational Needs and Disabilities.

In order to repair the public finances and help raise the revenue required to increase funding for public services, the Government has taken the difficult decision to increase employer National Insurance contributions (NICs).

The Government published a Tax Information and Impact Note on 13 November which sets out the impact of the employer NICs changes on employers.

At Autumn Budget 2024 and the recent provisional Local Government Finance Settlement, the Government announced £2 billion of new grant funding for local government in 2025-26. This includes £515m to support councils with the increase in employer National Insurance Contributions.

The £515m of additional funding made available to compensate local government 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. However, this funding is unringfenced and it is for LAs to determine how to use this funding across relevant services and responsibilities.