Finance minister calls for National Insurance clarity

The finance minister has called for clarity around funding to cover the increase in employers' National Insurance contributions from April.

Since the Budget last October, Caoimhe Archibald has been raising concerns around the impact that the increase will have on public sector employers.

The minister told MPs at the Northern Ireland Affairs Committee the estimated additional cost for departments and their agencies is £200m for 2025/2026 - not including healthcare providers or local councils.

The Northern Ireland Executive does not have the financial capacity to cover the increase in costs.

The NI rise for employers is set to raise £20bn a year making it one of the biggest single tax-raising measures in history.

From April, employers will have to pay NI at 15% on salaries above £5,000, instead of 13.8% on salaries above £9,100 currently.

While the Chancellor has said support will be provided for public sector employers, the minister said: "This is likely to fall far short of what is needed - possibly by the region of £100m."

She has written to the Treasury asking for urgent clarity on how much funding will be forthcoming and calling for these costs to be met in full.

The committee was also told Prof Gerry Holtham, who led the Holtham Commission in Wales, has agreed to review the level of funding needed in Northern Ireland.

The work is expected to be carried out in time to be considered as part of the next Spending review for 2026/2027.