Treat colleges and schools fairly on any NI reform, unions say

Ministers have been told any imminent national insurance hikes must be fully funded for both schools and colleges.

Reports this week suggested 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’s pension contributions, which are currently exempt. 

Daniel Kebede, the general secretary of the National Education Union, said it was “incumbent on the chancellor to protect public services from a further wave of cuts”.  

Chancellor Rachel Reeves “should 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”, he said. 

Pepe Di’Iasio, general secretary of the Association of School and College Leaders, said: “We would expect the government to compensate public sector employers in the event of a rise in NI employer contributions, as has happened in the past, and for this to be new funding, not taken from money meant for children’s education.”

In 2021 under the Conservative government, schools were given help to deal with NI rises but FE colleges were left out.

Di’Iasio added: “If employer contributions do rise, it’s vital that the compensation covers the full cost of the increased contributions and that it is provided to colleges as well as schools.” 

When quizzed about NI reports this week, education secretary Bridget Phillipson said she would not “engage in speculation”, but “recognised the pressures that have been there in recent years”.