Written question WQ96136
- Asked by
- Heledd FychanPlaid
- To be answered by
- Cabinet Secretary for Finance and Welsh Language
- Tabled
- Due
- Answered
- Time to answer
- 9 days
Question
What is the total financial shortfall to Wales as a result of the UK Government's decision to use the Barnett formula for determining Treasury reimbursements to core public services to cover increases in employer national insurance contributions?
Answer
Answered by Cabinet Secretary for Finance and Welsh Language
The UK Government has confirmed its intention to provide support to the Welsh Public Sector for the increased cost of Employers National Insurance Contributions based on the Barnett Formula. The Welsh Government will continue to discuss this with the UK Government and make the case that the actual costs should be fully funded in line with the Statement of Funding policy.
Based on provisional figures provided by UK Government, we estimate the shortfall between actual costs to Public Sector employers in Wales and the amount of funding provided by the UK Government to be around £65m. We will continue to work through the details, but will not have a final understanding of the shortfall until funding is formally allocated by the UK Government at Main Estimates later in the Spring.
I remain committed to passing on any funding we receive from the UK Government as a result of their decision to increase Employers National Insurance, to the public sector in Wales.