Esther McVey has demanded government “come clean” over how much its National Insurance tax rises are costing schools.
Ms McVey said schools were having to find additional cash to cover the rise in changes to Employer National Insurance Contributions (NICs), despite initially being told government would meet the cost.
Speaking in Parliament she said: “This government is hampering schools from recruiting new teachers, first they hiked up the cost through the increase in Employer National Insurance Contributions, and then the money promised to state school from charging VAT on private school fees was actually spent on housing instead.
“So can the Secretary of State tell the House how much the increase in Employer National Employer Contributions will cost schools in total over this Parliament.”
Last month Ms McVey visited two schools in her constituency and concerns were raised with her over schools having to find extra money to fund the tax rises.
She was told that due to school funding formula’s (which are allocated to local authorities), certain areas will not be given the full amount to cover the increase in staffing cost, and therefore it falls on the school to find the savings.
Ms McVey added: “These schools were clear that government was not meeting the full increase in cost. When government announced this policy, it said it would reimburse schools for the additional cost and this clearly is not happening. It is disgraceful that it is costing schools more. All this will do is leave schools short of cash or having to make tough decisions on staffing, as is the case with so many businesses having to cope with Labour’s rise in Employers National Insurance Contributions.
“Government needs to come clean and admit not only is it destroying businesses and employment opportunities, it is targeting our schools and young people.”
Ms McVey has submitted Written Parliamentary Questions to the Department for Education and the House of Commons Library asking for answers.
In response to the exchange during Education Questions, Education Secretary Bridget Philipson did not provide any figures on cost to schools.
