The Government announced in the Budget that it is ....
"to increase the rate of employer NICs by 1.2 percentage points to 15%. The per‑employee threshold at which employers start to pay National Insurance will be reduced from £9,100 per year to £5,000 per year. These changes will apply from 6 April 2025.
To support small businesses with these changes, the government is increasing the Employment Allowance from £5,000 to £10,500 and removing the £100,000 threshold, expanding this to all eligible employers. This means that 865,000 employers will pay no NICs next year."
LALC advises that
It will affect parish and town councils if gross pay exceeds £5,000 for any employee then the council will be liable to pay the increased Employer’s National Insurance from the new lower threshold. Private sector employers with a few employees can claim the increased Employers' Allowance but it does not apply to public bodies such as parish and town councils as stated on the following webpage Employment Allowance: Check if you're eligible - GOV.UK it states …
“Who cannot claim Employment Allowance
You cannot claim if you’re a public body or business doing more than half your work in the public sector (such as local councils and NHS services) - unless you’re a charity.”
Representations have been made to Government by National Association of Local Councils but they refused to change the policy announced in the Budget.