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Schools must be reimbursed for any national insurance hike, say unions

Reports suggested the government could increase national insurance contributions
Samantha Booth

Chief reporter

Jack Dyson

Senior reporter

3 min read
|

Ministers have been told any imminent national insurance hikes must be fully funded for schools, as some trusts put aside cash just in case it isn鈥檛.

Reports the government will increase NI contributions for employers when it presents its first budget at the end of this month.

The BBC said this could be done by charging NI on an employer鈥檚 pension contributions, currently exempt.

Daniel Kebede
Daniel Kebede

Daniel Kebede, the general secretary of the National Education Union, said it was 鈥渋ncumbent on the chancellor to protect schools and other public services from a further wave of cuts鈥. 

Chancellor Rachel Reeves 鈥渟hould reimburse public sector employers for additional costs, and at the same time use money raised from the private sector to increase funding for public services鈥, he said.

Damien McNulty, the national salaries official at the NASUWT, said any unfunded additional costs 鈥渨ould exacerbate a school funding system that is already fully stretched鈥.

Bellevue Education Trust has already begun making 鈥渃ontingencies鈥 for unfunded rises. 

Mark Greatrex, its chief executive, said it was 鈥渟cenario planning鈥 a 1.25 per cent rise, equivalent to tens of thousands of pounds. 

鈥淲e鈥檙e adding that into our assumptions for our individual school budgetary arrangements. If schools have got the reserves in their individual budgets then that鈥檚 fine, but if they don鈥檛 鈥 or if their in-year budget is quite close, they might have to find some adjustments to be able to afford this increase.鈥

Unfunded rise would prompt cuts

Bev Matthews, the chief executive of the Minerva Learning Trust, said if it was unfunded the trust would have to cut funding for 鈥渃urriculum resources, trips, visits, all the additional services we鈥檝e put in place to address issues with behaviour and attendance.

鈥淚t minimises what we can do in all these areas. It鈥榮 basically money away from additional services for children.鈥 

The government has previously funded similar rises, covering rises in employer pension contributions and the abandoned health and social care levy.

But this was just for state schools, meaning private schools may not be shielded from any rise 鈥 which would also come as VAT is whacked on to their fees. 

David Woodgate, the chief executive of the Independent Schools鈥 Bursars Association, said it would be a 鈥渇urther tax that schools would have no choice but to pass on to parents鈥. 

When quizzed about NI reports this week, education secretary Bridget Phillipson said she would not 鈥渆ngage in speculation鈥, but 鈥渞ecognised the pressures that have been there in recent years.鈥

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