Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the proposed increase in employer National Insurance contributions on early years providers.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.

Early years providers play a crucial role in driving economic growth. The Government has committed to delivering the expansion of government-funded childcare and opening 3,000 new school-based nurseries in this parliament. At the Budget, the Chancellor announced that total funding will rise to over £8 billion in 2025-26 to support providers. On top of this, the Department for Education confirmed an additional £75 million of funding in 2025-26 to support the sector deliver the final phase of expanded childcare entitlements from September 2025. Alongside this, rates for the early years pupil premium have also been increased by over 45%, equivalent to up to £570 per eligible child per year.