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National insurance contribution (NIC) increases | |
Following the 2024 budget announcement that employers' national insurance contributions (NIC) will increase to 15% from April 2025, along with the level that employers will start paying NIC for each employee falling from £9,100 to £5,000, the Department for Education (DfE) has confirmed that they will be issuing an additional funding of over £1 billion to help manage the increased costs. | |
The funding will be distributed to support mainstream schools and high needs settings, with additional allocations for early years and post-16 provisions. The NICs grant will form part of the core schools budget grant (CSBG), with separate funding lines for eligible early years and post 16 provisions. However, although the funding will cover the full financial year from April 2025, the academy trusts will not be paid this until October 2025 meaning that the delayed timing in the payments could result in short term cash flow challenges which will need to be considered. | | | |
The DfE has published a calculator to help the sector estimate the NIC grant allocations. The grant will be calculated based on 2024–25 budgeted baselines, with allocations confirmed in July 2025. This will help academies when considering future budgets as it will allow a base grant figure to be known. The grant calculator can be found here, along with further details about the NIC grant. | |
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If you wish to discuss this further, please use the contact one of our Education team members here at James Cowper Kreston.
If you would like to arrange a virtual meeting to discuss your specific circumstances in relation to any of the above, please get in touch with your usual contact within James Cowper Kreston or contact me using the details below.
Rebecca Foy Senior Manager T: +44 (0)7769 735400 | E: rfoy@jamescowper.co.uk | | | |
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The information in this newsletter must not be relied on as giving sufficient advice in any specific case. | | | |
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