In April 2025 the NIC employer rate increased from 13.8% to 15%, while the threshold at which employers start paying NIC on employees’ earnings reduced from £9,100 to £5,000. HM Treasury told us the aim was to raise more tax to fund the increase in public spending announced in the autumn budget.45 At the autumn budget the government set aside £4.7 billion to support the public sector with the additional cost of employer NICs.46 Government made £515 million available to support local government with increased NICs costs relating to their direct employment costs.47