Commons Sense

House of Commons · Ministers' Questions

National Insurance Contributions

Monday 27 January 2025 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Ministerial Questions addressed National Insurance Contributions on 2025-01-27
  • Mr Richard Holden questioned the impact on early years providers, noting significant cost increases
  • Neil O'Brien inquired about compensation for nurseries and schools facing national insurance hikes

Topics (select to filter)

Questions & Answers

Q1 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.

Question

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?

Answer from The Parliamentary Under-Secretary of State for Education (Stephen Morgan)

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.

Partly answered

Not addressed: The Minister did not provide a direct assurance regarding childcare costs or availability of places.

How: Unlike The Conservative Party, We Are On The Side Of Working Parents

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q2 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.

Question

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?

Answer from The Parliamentary Under-Secretary of State for Education (Stephen Morgan)

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.

Partly answered

Not addressed: The Minister did not provide a clear commitment to cover all costs faced by nurseries and schools.

How: In Line With The Arrangements For Other Areas

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)