Parish and Town Councils: Employers' Contributions

(asked on 30th May 2025) - View Source

Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, what assessment she has made of the potential merits of extending National Insurance Contributions relief to town or parish councils that undertake functions typically carried out by principal authorities.


Answered by
Jim McMahon Portrait
Jim McMahon
Minister of State (Housing, Communities and Local Government)
This question was answered on 5th June 2025

The government recognises the important role town and parish councils have in improving the quality of life and wellbeing of their communities but has no direct role in funding parish and town councils, and therefore has not provided compensation for the increase in the rate of employer’s National Insurance Contributions, consistent with the approach taken by the previous government.

We recognise that the increase in the rate of employers’ National Insurance Contributions (NICs) will lead to increased costs for some parish councils, which may require them to increase their precept. We recognise that decisions to increase precepts are not taken lightly by parish councils.

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