By james art 
Bridget Phillipson said schools and colleges would be compensated nationally after Rachel Reeves announced last week that the levy would rise by 1.2 percentage points to 15%.
The Chancellor added that employers will have to start paying National Insurance when employees earn more than £5,000, up from £9,500 previously.
Newly appointed Shadow Education Secretary Neil O’Brien (Harborough, Oudeby and Wigston) asked if headteachers and college leaders would receive extra money to cover higher costs, including for suppliers and indirectly employed members of staff.
Speaking on Education Matters, Ms Phillipson (Houghton and Sunderland South) told the Commons: “What I can say is that when it comes to schools and colleges, they will be compensated nationally.
“However, what I would point out to (Mr O’Brien) is that when I became Secretary of State in July, I received the Teachers’ Pay Review Authority award – 5.5% – which was received by the last government put in drawer, ran away and called an election.
“We have supported our teachers, who are crucial to our children’s life chances, and so I am delighted that we have been able to honor this award and recognize the vital contribution of our teachers.
“And so we will hire 6,500 new expert teachers. If they refuse to support our VAT commitments then they need to state how many teachers they intend to make redundant.
Mr O’Brien had asked: “What is the cost to schools and colleges of the increase in National Insurance and how much will they be given in compensation?
“And can (Ms Phillipson) confirm clearly that they will be fully compensated for the increased prices that suppliers and indirectly employed members of staff such as catering, IT and premises staff will charge as a result?” Will these indirect costs be covered, yes or no?’
The Government has also been urged to protect childcare providers from the impact of the rise, with Lib Dem education spokeswoman Munira Wilson (Twickenham) saying two thirds of early years places are provided by the private and voluntary sectors.
Ms Phillipson said the Government would provide £8.1 billion for early years entitlements in 2025/26, adding: “We are also increasing Employment Allowance to £10,500 and extending this to all eligible on employer terms, so smaller providers may not pay National Insurance at all in 2025/26.’
Ms Phillipson had told newly appointed shadow education secretary Laura Trott that the government would announce whether early years funding rates for age groups would change to reflect the increase in National Insurance.
“We will set out more details on funding rates in due course,” she said.
Speaking on the day of her appointment, Ms Trott (Sevenoaks) defended the record of the previous government and asked why Labor did not want to continue some of its policies.
She said: “There has been a lot of discussion about our results in government. Under the Conservatives, England climbed the international education rankings, what happened in Labour-ruled Wales? It fell. Youth unemployment has fallen, school standards have improved. This is the record of a Conservative government and I am proud to defend it.
She added: “While we learn the lessons of our defeat, they fail to learn from the brilliant record we have for school standards. Scores are improving, more schools are “good and outstanding,” and now the opposing side is trying to undermine one of the very foundations of success.
“So why is she canceling the academy conversion grant when we are trying to make such a push in terms of improving school standards?”
Ms Phillipson replied: “I’m sorry to disappoint (Ms Trott) but we will be talking about their 14 years of failure for a very long time indeed. And that’s because the children of our country have been failed by her party time and time again.