The Autumn Budget employment changes

The Autumn Budget announced this week (October 2024), the first under the new Labour Government, included several important changes for employers and their employees. These changes sit alongside the recent pledged changes to UK employment law as part of their plan to “Make Work Pay” and deliver “A New Deal for Working People”.

The speech had a clear focus on the Government taking steps to encourage growth and focus on long-term economic stability.

Building on the recent article examining the changes to employment law under the Government’s recent bill, Steph Marsh, Head of Coodes’ Employment team, looks at the changes announced in the Autumn Budget.

Key employment changes

There were several key changes for employers and employees announced in the Autumn Budget. The main changes to hit almost every employer will be the changes to Employers National Insurance Contributions and the uplift in the National Minimum Wage.

However, there were also changes such as to the Agricultural Property and Business Property reliefs which could impact some businesses.

Employer’s National Insurance Contributions

There was a raft of changes to Employer’s National Insurance Contributions announced in the Autumn Budget. However, there were no changes to the employee’s National Insurance Contributions. The changes included:

• Increase in Employer’s National Insurance Contributions by 1.2%, meaning contributions will rise to 15% from April 2025
• The threshold for contributions to be payable on the employee’s pay will be reduced from £9,100 to £5,000 per year
• The amount employers can claim back from their National Insurance bill, the Employer’s Allowance, is set to increase from £5,000 to £10,500
• Some employee pay, such as gains made under HMRC-approved share incentives, SIPS and company share option plans will remain exempt

Employers should review their finances to ensure that they can comply with these increases when they come into force.

National Minimum Wage

Changes to the National Minimum Wage were announced in the Autumn Budget for implementation from April 2025. These included:

• The National Living Wage (for employees over 21) will increase by 6.7%, from £11.44 to £12.21 from April 2025
• The National Minimum Wage (those 18-20) will also increase by 16.3%, from £8.60 to £10.00 from April 2025

How Coodes can help

It is important to stay up to date with the changes under the Labour Government including following the Autumn Budget. Coodes can assist with advice in relation to any of the proposed changes and how they would affect employers. The team can also help with amending your contracts, policies and other documents to make sure they comply.

Coodes Solicitors, one of the South West’s longest established and leading law firms in Cornwall and Devon, supports businesses to keep up to date with the most recent changes in Employment Law. If you need some friendly advice, call Steph Marsh on 01579324017 or email steph.marsh@coodes.co.uk.