Social Justice and Social Security Committee 18 December 2025
The UK Government’s budget resulted in additional consequentials of £820 million over the UK spending review period—it is important to note that that is over the spending review period.
The amount falls short of the investment that ministers called for. To summarise that with an example, it does not make up for the funding shortfall in the cost of the increased employers’ national insurance contributions that were introduced in last year’s budget. Although there has been an increase in Barnett consequentials, it is important to recognise the time period of that increase and the fact that it does not make up for the hit from last year’s increase in employers’ national insurance contributions.
I have already mentioned how we will deal with the two-child limit funding and what our approach is to using the money that has been freed up from our commitment on that.