AQW 23511/22-27

Ms Claire Sugden
Independent
East Londonderry

Tabled Date: 27/02/2025
Answered On Date: 14/03/2025
Priority Written: No

Question:
To ask the Minister of Health to detail any measures his Department is putting in place to mitigate the impact of the upcoming increase in the Minimum Wage and employers' National Insurance contributions on his Department’s budget and operations.

Answer:

My Department anticipates in year funding will be received for the National Insurance increase to cover those staff who are directly employed.

However, I recognise that the increase in employer’s National Insurance contributions announced in the Autumn Budget as well as the increase in National Minimum wage will significantly increase the cost-base for Family Health Service and Social Care providers.

Currently I am not anticipating additional funding will be provided to cover these additional costs, however I have written to the Secretary of State for Health and Social Care on the issue of National Insurance, to urge him to work to ensure the treatment of these providers faced with these cost pressures is equal to our other providers of health and social care.

I’ve also written to the former Finance Minister asking that she also bring her influence to bear on HM Treasury in this regard and I am aware that she has written to the Chief Secretary to the Treasury in similar terms.

Following the announcement of the 2025-26 Draft Budget allocation my department has assessed that we will be facing a significant funding gap in 2025-26 as a result of both inflationary pressures and increased demand.

However in recognition of the valuable role played by those providers affected, I will be considering these funding pressures alongside other priorities before I make any final funding decisions.