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NI rise for employers could ‘endanger government’s housebuilding plans’, social landlord says
The National Insurance rise for employers announced in the Autumn Budget could “endanger the government’s housebuilding plans”, a social landlord has said.
Lee Bloomfield, chief executive of Bradford-based Manningham Housing Association, said the rise “will not only add to the costs faced by housing associations”, it will “also impact on all other elements of the supply chain which will be expected to deliver the many new homes so desperately required”.
Chancellor Rachel Reeves announced a rise from 13.8% to 15% on the amount employers will have to pay on their National Insurance contributions from April 2025.
She also lowered the £9,100 threshold employers start paying National Insurance on employees’ earnings to £5,000.
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Ms Reeves said: “This will raise £25bn per year by the end of the forecast period. I know that this is a difficult choice. I do not take this decision lightly.”
Ahead of the Budget, the chancellor confirmed an additional £500m for the Affordable Homes Programme (AHP).
In a statement, Mr Bloomfield said increasing the AHP to £3.1bn was “certainly a positive”.
“But, given the additional money will deliver only 5,000 of the 1.5 million new properties ministers have committed to provide over the next five years, it is merely a drop in the metaphorical ocean,” he said.
The government also announced a five-year rent settlement for social landlords.
Mr Bloomfield added: “The promised five-year social housing rent settlement will offer a degree of much-needed financial stability for housing associations, with the possibility of a 10-year settlement after a consultation process.
“However, the rise in employers’ National Insurance contributions will not only add to the costs faced by housing associations, it will also impact on all other elements of the supply chain which will be expected to deliver the many new homes so desperately required.
“I sincerely hope that the chancellor has not made a decision she will come to regret.”
The Treasury did not comment, but pointed to the £500m top-up to the AHP and £3bn in guarantees to support SMEs and the buy-to-rent sector.
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