William Eichler 18 June 2025

Failure to consider impact of NICs hike on councils ‘major misstep’

Failure to consider impact of NICs hike on councils ‘major misstep’ image
© Doidam 10 / Shutterstock.com.

The Government’s failure to consider the impact that the National Insurance Contributions (NIC) increase would have on councils was a ‘major misstep’, MPs have said.

A new report by the Public Accounts Committee (PAC) found that the Government undertook no assessment of the indirect costs to councils of the NICs rise in April.

It warned private providers, such as those working in the adult social care sector, may pass on costs to councils or hand back contracts.

The report also raised concerns over councils’ overspending on special educational needs and disabilities (SEND), reiterating the committee’s warnings about the March 2026 deadline for the end of the ‘statutory override’, which enables councils to keep these deficits from their main budgets.

The Government has indicated that it will bring forward further plans for SEND reform in a white paper on schools in autumn 2025.

‘Alarmingly, scrutiny of council finances can now provoke a sense of déjà vu, with the same unfixed issues seen over and over,’ said PAC chair Sir Geoffrey Clifton-Brown MP.

‘We would urge the Government to use the funding announced in this spending review as a starting point for the paradigm shift required.’

Responding to the report, Cllr Louise Gittins, chair of the Local Government Association, called for ‘urgent clarity’ on how the Government plans to address high needs deficits.

Minister of State for Local Government and English Devolution, Jim McMahon OBE MP, criticised the report, arguing its claims are ‘not supported by the evidence.’

‘We’ve taken action to restore the audit system to a functioning state, recast our approach to council best value and we are laying legislation to bring in a new Local Audit Office,’ he said.

‘The Spending Review provided over £5bn of new grant funding for local services, and that's on top of the £69bn we have already injected this year to boost council finances.’

SIGN UP
For your free daily news bulletin
Highways jobs

Data, Monitoring and Citizen Science Officer

Durham County Council
Grade 10 £37,035 to £40,476 p.a. (Pay Award Pending)
We are looking for an organised and reliable individual to join our team here at the North Pennines National Landscape in Stanhope for a period of 15 Stanhope
Recuriter: Durham County Council

Enhanced Teaching Assistant

Durham County Council
£25,584 - £27,711 pro rata
Enhanced Teaching Assistant Grade 5, £25,584 - £27,711 pro rata 37 hours per week, Term Time only + 2 weeks Permanent     Required from 1st September Ferryhill
Recuriter: Durham County Council

Structures Commissioner

Derbyshire County Council
Grade 14 £53,166 - £59,080 per annum (Pay Award Pending)
We are seeking an experienced and strategic leader to join our team as the Structures Commissioner. Derbyshire
Recuriter: Derbyshire County Council

Rough Sleeper Outreach Officer - WMF2139e

Westmorland and Furness Council
£31,067 - £31,586
We have an excellent opportunity for a motivated candidate to apply for the role of Rough Sleeper Outreach Officer. Penrith, Cumbria
Recuriter: Westmorland and Furness Council

Customer Operations Assistant

Wyre Borough Council
£12.26 Per Hour
Marine Hall is a vibrant and dynamic venue dedicated to delivering exceptional experiences for our audiences and customers. Poulton-Le-Fylde, Lancashire
Recuriter: Wyre Borough Council
Linkedin Banner