Question to the HM Treasury:

To ask His Majesty's Government what plans they have to discuss with the Welsh Government the full implications of the proposed rises to National Insurance contributions which the Welsh Government will be responsible for implementing in the financial year 2025–26 and the timeframe; and what proportion of the additional payments which the Welsh Government as an employer will be required to make will be covered by additional funding from the Treasury.

HM Treasury continues to engage closely with finance counterparts in the Welsh Government.

At Autumn Budget 2024, the Chancellor provided funding to the public sector to support them with the additional cost associated with changes to Employer National Insurance Contributions.

The Welsh Government will receive funding through the Barnett Formula in 2025-26 for any changes to UK Government department budgets, including support for Employer National Insurance Contributions. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy.

This funding will be in addition to the Welsh Government’s record Spending Review settlement for 2025-26, which is the largest in real terms of any settlements since devolution.