What support does the Welsh Government plan to put in place to support the social care sector following the increase in employer national insurance contributions?
We appreciate the valuable work of the social care sector and the financial pressures it is facing. National Insurance is a non-devolved tax and the responsibility of the UK Government. Ultimately, difficult decisions were required to raise enough revenue to restore the public finances; however, the UK Government announced a balanced package which also broadens the base of wages on which employers pay National Insurance Contributions.
The UK Government has confirmed it will provide funding to public sector employers to cover the increased costs of employer National Insurance contributions. It will use the official Office for National Statistics definition of a public sector employer.
The UK Government has also confirmed the Welsh Government will be provided with funding to support the costs to the devolved public sector. We have not yet had confirmation of how much additional funding Wales will receive to support the additional costs to devolved public sector employers. We are continuing to work with HM Treasury to clarify the details and the level of support that will be provided.