National Insurance contributions (NICs) grant and early years National Insurance contributions (EY NiCs) grant for 2025 to 2026

UK Government Announces National Insurance Contributions Grants for Educational Institutions

The UK Government has recently unveiled substantial funding support for educational institutions across England through the National Insurance Contributions (NICs) grant and Early Years National Insurance Contributions (EY NICs) grant for the 2025 to 2026 financial year. This initiative aims to mitigate the financial impact of increased employer National Insurance Contributions rates set to take effect from April 2025.

Funding Allocation

The government has committed over £930 million to support mainstream schools serving pupils aged 5 to 16 and high needs settings in managing the heightened employer contributions. Within this comprehensive funding package, £25 million has been specifically designated for schools with early years provision, whilst £155 million has been allocated to post-16 institutions, including further education colleges.

This strategic funding distribution reflects the government’s recognition of the varying financial pressures faced by different educational sectors and demonstrates a commitment to supporting the entire educational spectrum.

Eligibility Criteria

The grants target a wide range of educational establishments in England, including:

• Local authority-maintained schools

• Academies (including free schools)

• Maintained nursery schools

• School-based early years provisions

• Local authorities employing centrally employed teachers and support staff

The inclusive eligibility criteria ensure that financial support reaches various educational institutions, helping to maintain operational stability across England’s educational landscape.

Implementation Timeline

The government has already published funding rates for mainstream schools, academies, maintained nursery schools, and school-based early years provisions, allowing these institutions to begin financial planning for the coming year.

Specific allocations for schools and high needs settings are expected to be announced in May 2025, providing institutions with time to incorporate these funds into their financial strategies before the start of the academic year. Additional updates focusing on high needs settings and new or expanding schools are scheduled for March 2026, ensuring that emerging educational establishments also receive appropriate support.

Planning Tools

To facilitate accurate budgeting, the government has developed a calculator tool designed specifically for mainstream schools and academies. This practical resource will help educational leaders estimate their grant funding, focusing on the 5 to 16 mainstream pupil population.

It is important to note that allocations for early years and post-16 provisions will be calculated separately using specialised methodologies that account for the unique financial requirements of these sectors.

Conclusion

The NICs and EY NICs grants represent a significant investment in England’s educational infrastructure during a period of increased financial demands. By providing this targeted financial support, the government aims to ensure that rising employer National Insurance costs do not compromise educational quality or institutional stability.

Educational institutions are encouraged to utilise the available planning tools and monitor upcoming allocation announcements to maximise the benefits of this funding initiative.

Further Information

For comprehensive details about the National Insurance Contributions (NICs) grant and Early Years National Insurance Contributions (EY NICs) grant for 2025 to 2026, please visit the official UK Government website

Do you have any queries? Contact Us