Question to the Department for Education:

To ask the Secretary of State for Education, pursuant to the Answer of 4 September 2025 to Question 69839 on Schools: Employers' Contributions, how much and what proportion of the cost of the increase in employers' National Insurance Contributions will be covered by the £1 billion additional funding that will be provided.

The department is providing mainstream schools and high needs settings with over £930 million to support with the increases to employer National Insurance contributions (NICs) from April 2025. We are also providing £25 million in respect of schools with early years provision and £155 million for post-16 schools and academies and further education colleges. Taken together, this is an increase of over £1.1 billion. This funding is designed to provide schools with support to manage NICs pressures. We recognise that the balance between funding and costs will vary between schools.

The amount of public sector support was based on an estimate of the proportion of employer NICs receipts paid by public sector organisations, using the Office for National Statistics (ONS) classification of the public sector boundary. HM Treasury routinely uses the ONS classification of the public sector boundary, for example in relation to public sector spending, borrowing and debt.

This funding was then allocated to departments based on a weighted average of the headcount and wage/salary data that all departments submitted to HM Treasury.

Our funding system is not designed so that every school and college receives funding that fully matches their precise spending, as spending, including NICs costs, varies across institutions because of the decisions each takes on its staffing.