Welsh Government Adds £36m to Bridge NI Funding Gap

Welsh public services will receive additional funding to help cover the increased costs from higher National Insurance contributions, the Welsh Government has announced 💰

The rise in employer National Insurance contributions has created a £257m annual cost burden for the Welsh public sector. While the UK Government provided £185m in funding, this left a significant shortfall of £72m.

The Welsh Government is stepping in with an extra £36m from its reserves, bringing the total funding package to £220m – covering approximately 85% of the 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.”

He added: “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.”