Newport Council Uncertain About Funding for National Insurance Contributions
Newport Council faces a potential £4.5 million increase in staffing costs due to National Insurance changes, with funding still unclear.
Newport, Wales, UK Government, National Insurance, Budget
Newport: The UK Government announced last year that employers must pay more National Insurance. This change could raise Newport Council’s staffing costs by about £4.5 million.
The council’s draft budget for 2025/26 assumes full funding for this cost. However, both councils and the Welsh Government are still waiting to see how much the Treasury will cover.
On Thursday, Newport City Council’s scrutiny management committee met to discuss the budget. Cllr John Harris asked if the draft budget would change if the funding for National Insurance was less than expected.
Meirion Rushworth, the council’s finance head, mentioned they expect the money to come through. But, he noted, they won’t have final confirmation until spring or summer.
He warned there’s no guarantee they will receive all the funds. Cllr Matthew Evans expressed concern about the potential impact if the government doesn’t provide enough support.
Cllr Stephen Cocks inquired about the budget’s impact if there’s a funding shortfall. Rushworth explained that it would lead to overspending, which they would need to address in the next year’s budget.
He added that this situation is beyond their control and they can’t absorb the costs. Meanwhile, in the Senedd, finance secretary Mark Drakeford said the Welsh and UK governments are still discussing funding.
Drakeford stated that the UK Government is working on how to support public services affected by the National Insurance increase. He emphasized the importance of how this support is distributed.
He also mentioned that Welsh ministers expect additional funding for National Insurance in late spring, but the exact amount from the Treasury remains uncertain.