Welsh public services will get extra money to help meet higher National Insurance costs this year.
The increase in employer National Insurance contributions means:
- A £257m extra cost to the Welsh public sector each year.
- The UK Government have provided £185m, leaving a shortfall of £72m.
- The Welsh Government is providing an extra £36m to help fund the gap.
- The total funding package is £220m, covering about 85% of increased costs for Welsh public services.
Finance Secretary Mark Drakeford said:
“We’re protecting our vital public services by using £36m from our reserves to help address the National Insurance shortfall left by UK Government.
“The UK Government did provide funding, but this falls short of the actual costs faced by Welsh public services, creating a multi-million-pound gap every year.
“We have stepped in to help as much as we can, but the Welsh Government cannot afford to cover the entire shortfall.
“The UK Government should treat the public sector the same across the UK and make good on its pledge to fully fund these extra costs.”
