National Insurance Contributions 2025-01-27

2025-01-27

TAGS
Response quality

Questions & Answers

Q1 Partial Answer
Richard Holden Con
Basildon and Billericay
Context
The National Insurance Contributions (Secondary Class 1 Contributions) Bill has raised concerns among early years providers about increased costs. Providers in both the private sector and state schools are worried about additional expenses.
Early years providers are being hammered. In many cases, their national insurance costs per staff member are almost doubling. A large number are small businesses in the private sector, while others are schools that are taking children before they go into reception classes. All of them—both primary schools in the state sector and small private providers—are worried about the extra costs being imposed on them. Can the Minister assure my constituents and, indeed, people throughout the country that families will not face higher costs and that those childcare places will still be there? Can he assure the House that we will have more childcare places at the end of this Parliament than we had at the start of it?
Unlike the Conservative party, we are on the side of working parents, and high-quality education will be available to every child. As for the hon. Gentleman’s substantive point, it would help if the Conservatives were honest. They would not reverse the rise.
Assessment & feedback
The Minister did not provide a direct assurance regarding childcare costs or availability of places.
Unlike The Conservative Party, We Are On The Side Of Working Parents
Response accuracy
Q2 Partial Answer
Neil O’Brien Con
Harborough, Oadby and Wigston
Context
Local councils received a bill of £1.8 billion due to the national insurance increase but only received compensation for less than a third of that because indirect costs were not covered.
The decision not to compensate nurseries for the national insurance increase has already pushed providers “to the brink”, according to the Early Years Alliance, and many in schools, including schools with nurseries, are worried that they will be next. Can the Minister reassure the House that compensation for the increase will cover all the costs to schools, not just the direct costs?
The Government have announced that public sector employers will receive compensation for the increase in their national insurance contributions, including school-based nurseries and maintained nursery schools, but in line with the arrangements for other areas, there will be no additional NICs funding beyond that.
Assessment & feedback
The Minister did not provide a clear commitment to cover all costs faced by nurseries and schools.
In Line With The Arrangements For Other Areas
Response accuracy