A new report on education spending in England in 2024-25, from the Institute for Fiscal Studies (IFS), highlights that despite increases in funding, ongoing and upcoming cost pressures are likely to increase the financial strain on providers, including the rise to employer National Insurance contributions (NICs) and national minimum wage.
However, it says that the impacts are ‘somewhat offset’ by a more generous NIC employment allowance, which particularly helps providers with small numbers of employees, as they are unlikely to pay NICs. It goes on to reveal the providers who would stand to benefit, they are:
According to the IFS, providers employing more staff than in these examples would ‘lose out’ from the changes, ‘the bigger employer, the more so’.
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