Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 3 April 2025 to Question 42630 on Employers' Contributions: Welsh Government, what mechanism her Department will use to provide compensation for public services in Wales for the increase in employers’ National Insurance contribution costs after 2025/26.

The Welsh Government’s budget is growing in real terms between 2024-25 and 2028-29 and their Spending Review settlement is the largest in real terms since devolution in 1998. At Autumn Budget 2024, the Chancellor agreed to provide funding to the public sector to support with the changes to employer National Insurance.

The devolved governments received funding through the Barnett formula in 2025-26, including on this support. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy.