Chancellor’s Autumn Statement

Wednesday’s Autumn Statement delivered a comprehensive set of announcements including changes to National Insurance, an increase in the minimum wage, and adjustments to benefits, as follows:

National Insurance-

There is to be a reduction in employee National Insurance from 12% to 10%, effective from 6th January 2024.

Minimum Wage-

In April next year, the National Living Wage will see an increase from £10.42 to £11.44 per hour, representing a 9.8% rise. This higher rate will extend to 21 and 22-year-olds for the first time, having previously been applicable only to those over the age of 23.

Benefits and Welfare-

The Government’s changes to the welfare system will require benefits claimants to take part in a mandatory work placement if they haven’t found a job within 18 months.

Whilst lower national insurance and a higher national living wage will help to alleviate some financial pressure, a number of charities are arguing that the Statement does not go far enough to make a significant difference. Similarly, Ben Willmott, Head of Public Policy for the CIPD, said: “The Government must broaden its plans for growth beyond a narrow focus on science and technology towards supporting investment in people and skills across the economy.”  Employers are concerned that the increase in minimum wage will tighten the differential between lower skilled roles and those of first line supervisors – and will make it more difficult to apply a cost of living increase in 2024.

121 HR Solutions is mindful of statutory changes and the effect on clients and will always issue reminders of such changes, in good time. For further information on how 121 HR Solutions can support your business, contact us on 0800 9995 121.

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