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

To ask the Secretary of State for Housing, Communities and Local Government, whether councils will receive compensatory payments for increases in employer National Insurance contributions in (a) 2026-27 and (b) 2027-28.

The government provided an additional £515 million for local government in 2025-26 to manage the impact of changes to employer National Insurance Contributions. The recent Spending Review provides over £5 billion of new grant funding over the next three years for local services that communities rely on. This includes £3.4 billion of new grant funding through the Local Government Finance Settlement within financial years 2026-27 to 2028-29.

The government will bring forward its proposals for 2026-27, 2027-28 and 2028-29 through the provisional Local Government Finance Settlement later this year.