Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department has modelled the potential impact of changes to employers' National Insurance contributions introduced in April 2025 on the level of (a) recruitment, (b) staff retention and (c) wage growth of small and medium-sized enterprises.

A Tax Information and Impact Note (TIIN) was published alongside 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. The Government has also published an impact assessment on the 2026 National Minimum Wage and National Living Wage rates, including an assessment of business size impacts.

National Minimum Wage (NMW) and National Living Wage (NLW), rates are recommended by the independent and expert Low Pay Commission (LPC). In accepting the LPC’s recommendations – which balances the cost of living with impacts on businesses and competitiveness, as well as wider labour market and economic conditions – the Government supports the lowest-paid workers in the economy whilst ensuring that macroeconomic conditions remain stable to create the conditions for growth.

The Government continues to support micro, small and medium-sized, including by increasing the Employment Allowance from £5,000 to £10,500 to help protect the smallest businesses from changes to employer National Insurance contributions, as well as the Small Business Plan published in July 2025, delivering the most comprehensive package of SME support in a generation.