SIGOMA express concern about national insurance cost for councils

Posted on November 13, 2024

Sam Blakeman, senior policy and communications officer at the Special Interest Group of Municipal Authorities (Sigoma), told LGC he expects the cost of the policy to be “up to £500m” for councils, adding that “the current expectation is that all direct costs related to national insurance will be cost neutral for councils”.

But he added that “MHCLG has not shared how this will work or when councils will hear about compensation”.

It is hoped that more information will be provided in a policy statement expected from the government later this month, ahead of the financial settlement in December.

Mr Blakeman said there was “a lot of concern” among Sigoma members about the specifics of the compensation, particularly about the distinction between directly employed staff and services which are contracted out, or provided through arms-length bodies.

Additional costs passed on from contractors are a particular concern in relation to social care. Mr Blakeman expected that these increased costs “will definitely not be directly met”, saying there was an “indication” that the £600m of new grant social care grant provided in the budget “should help with this expected pressure”.

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