NALC is deeply concerned that the government does not intend to compensate parish and town councils for the increase in the rate of employer National Insurance Contributions (NICs) from 13.8% to 15% from April 2025, announced in the Autumn Budget 2024.

The chancellor of the exchequer, Rachel Reeves MP, delivered her first Autumn Budget to parliament on 30 October 2024. The most significant announcement which will affect parish and town councils is that the government is increasing the rate of employer NICs from 13.8% to 15% and reducing the per-employee threshold at which employers become liable to pay National Insurance (the Secondary Threshold) from 6 April 2025 to £5,000.

Since the Budget, NALC has been pressing the Ministry for Housing, Communities and Local Government (MHCLG) to clarify whether our member local councils will be included in compensation to public sector employers for employer NICs bills. NALC is disappointed in the response received from MHCLG officials that parish and town councils will not be compensated for this increase.

We will provide a briefing shortly, including what further representations we will be making in collaboration with NALC and how parish and town councils can help.