AQW 23194/22-27

Mr Danny Donnelly
Alliance Party
East Antrim

Tabled Date: 24/02/2025
Answered On Date: 07/03/2025
Priority Written: No

Question:
To ask the Minister of Education, pursuant to AQW 22139/22-27, to detail any assessment made by (i) his Department; and (ii) the Education Authority on the impact that the increase in employers' National Insurance contributions will have on the ability of the approximately 5,000 children with special educational needs and disabilities currently transported by private bus and taxi operators to attend school from April 2025.

Answer:

School transport is one of many vital services provided by private sector employers on behalf of the public sector and I am concerned about the impact the recent Budget may have on the cost to employers of providing those services. The impact on employers of the increase in National Insurance Contributions (NIC) will vary depending on the size of the business, how many it employs and how it manages the new arrangements.

I understand that a number of the private bus and taxi operators, who hold contracts with the Education Authority (EA) to provide school transport, are smaller businesses whose NIC liability may not increase or are self-employed and therefore unaffected. The EA does not, however, hold information that would allow it to identify the private bus and taxi operators who will be impacted or to make a detailed assessment of the extent to which this may increase their operating costs. The EA works closely with its transport operators and has advised that to date none have raised concerns about the rise in operating costs due to the increase in NICs, however it will engage with any who are impacted and for whom this presents difficulties.

It is clear that the increase in employers NICs has the potential to increase the already significant cost of the school transport service, however the picture is still emerging. At this stage, I believe the increase in operational costs of those transport operators who are impacted can be managed by the EA through the annual tendering process and I do not anticipate that this will result in children who are transported by private bus and taxi being unable to attend school.