Overview
- An SPICe analysis made public in July 2026 finds employers pay an extra £890 a year for workers on the real living wage and £1,053 for those on the Scottish median wage because of the 2024 employers’ National Insurance changes.
- The SNP, which commissioned the research, has urged Andy Burnham to reverse the 2024 rise and lower threshold, saying the higher employer bill has damaged jobs, wages and investment in Scotland.
- Chancellor Rachel Reeves introduced the rate increase and threshold cut in 2024 to raise revenue for public services and has defended the move as necessary to deliver a large uplift for the NHS while acknowledging there are valid criticisms.
- A spokesperson for Andy Burnham has given a non-committal reply that he is focused on growth and remains committed to the Labour manifesto, leaving the immediate policy outcome unresolved ahead of his expected premiership.
- Higher employer National Insurance raises firms’ payroll costs, which can slow hiring and investment, and the dispute feeds wider Scottish complaints about Westminster fiscal decisions and arguments for greater fiscal powers.