An increase in employer national insurance contributions could cost schools hundreds of millions of pounds, according to the National Foundation for Educational Research.
The organisation has added its voice to those calling for schools to be reimbursed for any rise announced at next week’s budget.
Its analysis shows a 1 per cent rise could cost schools between £175 and £200 million in increased costs for teachers and leaders. A 2 per cent rise would work out at between £350 and £400 million.
Those figures don’t take account of support staff due to uncertainty over their pay, so costs are expected to be much higher.
Reports last week suggested the government will increase NI contributions for employers when it presents its first budget at the end of this month.
Schools Week reported last week that unions had told ministers any imminent national insurance hikes must be fully funded for schools, as some trusts are already putting aside cash just in case it isn’t.
‘Significant strain’
The NFER warned today that increasing employer contributions “could add significant strain to school budgets, particularly at a time when budgets are already stretched”.
Its cost of living report last year “found that school leaders were taking difficult decisions to cut spending on learning resources and on buildings and maintenance in order to balance budgets”.
Carole Willis, the organisation’s chief executive, said: “Any unfunded employer NIC increases are likely to further exacerbate funding issues for schools.
“The government must carefully consider funding schools to pay for rises in employer national insurance contributions and balancing this against the wider economic outlook.
“With budgets already strained following the pandemic and cost-of-living crisis, further unexpected costs may impact negatively on children and young people’s learning and experiences.”
She added this consideration “should encompass both schools and further education colleges”.
Rachel Reeves, the chancellor, will set out her first budget on Wednesday next week.
