The Autumn Statement: Unlocking Insights.
Yesterday Jeremy Hunt delivered his Autumn Budget, with the aim and ambition to spark productivity in the UK. With a raft of measures there are some interesting points that employers need to keep an eye on.
The worst kept secret is the increase to the National Living Wage, this will increase by 10 per cent from £10.42 to £11.44 per hour. In addition, this will apply to all workers from the age of 21, so the category for 21- and 22-year-olds will now be removed.
The new rates and categories will take place from April, you have plenty of time to budget and model for this and it is important that the new rate is applied to those from 21 up if you apply the age-related lining wage.
The Chancellor also confirmed that Employees National Insurance will drop from 12% to 10% from 6th January. While the government expects a tax cut for 27 million people, they have also declared a financial commitment of £50 million over the next two years to elevate apprenticeships in the UK.
There will be additional investment in Apprenticeships to strengthen development in skills and in the field of engineering as well as other areas. 18-year-old apprentices diving into professions such as construction, will get minimum hourly wages set to climb from £5.28 to £6.40.
As reported by people management, there are insights into the government’s plan for returning to work. The focus of this plan is to give a bit of a helping hand to workers that have long-term sickness and disabilities and guiding them back to work.
The Back to Work plan will introduce improvements to fitness notes and work capability assessments, aiming to not only make the process run more smoothly and effectively but helping those struggling with health conditions to find jobs that are fit for them.
However, it doesn’t stop there. Jeremy Hunt has also revealed £1.3 billion in funding will be used to aid individuals in the UK who have been unemployed for over a year without any sickness or disability.
One thing to note is that if jobseekers are not able to enter and secure employment, the government plans to roll out mandatory work placements. Jobseekers will see their benefits coming to an end after six months if they do not engage with this scheme.
