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National Insurance and Minimum Wage increases drive large rise in bus costs

Rhodri Clark
21 March 2025
 

Bus operators in Wales and Scotland are implementing large fare increases as they brace themselves for the additional cost burden from increases in National Insurance contributions and the National Minimum Wage from 1 April. There will be a knock-on effect for local authorities in contract prices for schools and public buses.

On 1 April, the employers’ contribution rate for Class 1 NI will increase from 13.8% to 15%. At the same time, the Employment Allowance threshold will reduce...

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