Guidance

Explanatory note on the National Insurance Contribution compensation 2025 to 2026

This note explains the proposed methodology to allocate funding to local authorities for National Insurance Contribution pressures.

• From: Ministry of Housing, Communities and Local Government
• Published: 18 December 2024

Applies to England

Documents

Explanatory Note on Employer National Insurance Contributions funding

PDF, 175 KB, 4 pages

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Details

The government has announced an additional £515 million for local authorities, in compensation of National Insurance Contributions as part of the 2025-26 local government finance settlement. The NICs grant will form part of Core Spending Power at the final settlement only. This note provides an explanation on how the government will allocate NICs funding at the final settlement.

Published 18 December 2024