Extra funding to support higher National Insurance costs gap
Cyllid ychwanegol i fynd i’r afael â bwlch costau Yswiriant Gwladol uwch
Welsh public services will get extra money to help meet higher National Insurance costs this year.
The increase in employer National Insurance contributions means:
- A £257m extra cost to the Welsh public sector each year.
- The UK Government have provided £185m, leaving a shortfall of £72m.
- The Welsh Government is providing an extra £36m to help fund the gap.
- The total funding package is £220m, covering about 85% of increased costs for Welsh public services.
Finance Secretary Mark Drakeford said:
"We're protecting our vital public services by using £36m from our reserves to help address the National Insurance shortfall left by UK Government.
“The UK Government did provide funding, but this falls short of the actual costs faced by Welsh public services, creating a multi-million-pound gap every year.
“We have stepped in to help as much as we can, but the Welsh Government cannot afford to cover the entire shortfall.
"The UK Government should treat the public sector the same across the UK and make good on its pledge to fully fund these extra costs."
Notes to editors
- The increase in employer National Insurance Contributions has created an estimated cost pressure of £257m across the Welsh public sector.
- The UK Government provided £185m in funding, leaving an annual gap of approximately £73m.
- The Welsh Government's additional £36m reduces this gap to around £36m this year.
- The UK Government has provided Wales with a Barnett share of funding, instead of meeting the actual costs to the Welsh public sector.