To ask the Minister of Finance whether his Department has considered releasing additional funding to each Department to mitigate the impact of the upcoming increase in the Minimum Wage and employers' National Insurance contributions.

ANSWER

I appreciate that departments are facing additional pressures as a result of the British Government’s decision to increase employers National Insurance Contributions from April 2025.

The Treasury has advised that the Executive will receive Barnett consequentials on the additional funding provided to Whitehall departments for the increased costs.

These will not be confirmed until Westminster Main Estimates, which usually conclude around June. Therefore, this funding will be allocated to departments as part of the June Monitoring round.

However, our current planning assumption, informed by engagement with the Treasury is that the Barnett Consequentials will fall far short of the pressures identified by departments. I have raised this with the chief Secretary to the Treasury.