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Dept for Education and Skills

Answer

Paul Holmes: To ask the Secretary of State for Education and Skills what the estimated cost is to further education colleges of the increases in employer national insurance contributions introduced in April 2003 for (a) 2003-04, (b) 2004-05 and (c) 2005-06; and if he will make a statement. [127995] Alan Johnson: The additional cost in employers' national insurance contributions in 2003-04 for all further education institutions in England is estimated to be £25 million. Further education institutions receive funding for staff costs from a variety of sources, both public and private, so the element of the increase to be covered from public sources will be only a proportion of this. In 2003-04 assumed total funding for further education allocated to the Learning and Skills Council will increase by 6 per cent. in real terms compared with 2002-03. This places further education colleges in a good position to meet cost increases and invest in improving services for learners and employers. The likely cost of the increase in national insurance contributions in future years depends on a number of variables including the number of staff employed and the level of their pay. These are matters for colleges to determine within the resources that are available to them. Given this, the Department does not provide estimates of such costs for future years.

Secondary information

Type

Written question

Reference

127995; 410 c126W

Session

2002-03

Subjects

Costs Finance Further education Employers' contributions Increases National insurance contributions

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk