Schools: Employers' Contributions

(asked on 31st March 2025) - View Source

Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the effectiveness of the formula for reimbursing schools after increases in employer National Insurance contributions.


Answered by
Catherine McKinnell Portrait
Catherine McKinnell
Minister of State (Education)
This question was answered on 8th April 2025

In developing our National Insurance contributions (NICs) grant methodology for mainstream schools and academies, the department considered both the impact of the change to National Insurance rates and the changes to the threshold at which NICs are applied. By taking this approach, we have ensured that funding accounts for where increases to NICs will be most significant.

The department knows that the impact of the increase to NICs differs depending on the proportions of staff on relatively higher or lower salaries and have taken that into account in determining how much funding is allocated to primary, secondary and special schools. The technical details of how the funding is split between those phases of education has been discussed with stakeholders, including the Association of School and College Leaders.

We keep our grant methodology under review to ensure funding can best support schools and their pupils. That is why, for the first time, we are providing additional grant funding for mainstream schools with special units and resourced provision to support them with the higher staffing costs they typically face.

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