Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions she has had with the Welsh Government on the potential impact of providing compensation for public services in Wales for costs arising from the increase in employers national insurance contributions through the Barnett Formula.

At Autumn Budget 2024, the Chancellor agreed to provide funding to the public sector to support them with the additional cost associated with changes to employer National Insurance Contributions policy.

The Welsh Government will receive funding through the Barnett formula in the usual way in 2025-26, including on this support. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy.

The Welsh Government settlement is growing in real terms in 2025-26 and is the largest settlements in real terms of any since devolution. Overall, the Welsh Government receives at least 20% more funding per person than equivalent UK Government spending in the rest of the UK. That translates into over £4 billion more in 2025-26.