Autumn Statement | Employment Law Update

Kendal Hulme, our Head of Operations, provides a legal update for November 2022. She discusses the recently announced Autumn Statement and how it will affect employers.

Autumn Statement 2022 and what this means for Employers

On 17^th November the Chancellor, Jeremey Hunt, presented the Autumn Statement for 2022 emphasising “The government’s priorities are stability, growth and public services.”. In this article, we will explore how these priorities will impact employers and employees in the UK.

Increase in National Minimum Wage and National Living Wage

National Living Wage will increase as recommended by the Low Pay Commission (LPC) by a dramatic 9.7% for individuals aged 23 and over to £10.42 per hour. This increase could see a lower paid full-time employee receive an annual uplift of £1600. Potentially over 2 million employees will benefit from this.

From April 1^st 2023, National Minimum Wage will increase as below.

• Increasing the rate for 21-22 year olds by 10.9% to £10.18 an hour;
• Increasing the rate for 18-20 year olds by 9.7% to £7.49 an hour;
• Increasing the rate for 16-17 year olds by 9.7% to £5.28 an hour;
• Increasing the apprentice rate by 9.7% to £5.28 an hour; and
• Increasing the accommodation offset rate by 4.6% to £9.10 an hour

Employees who will benefit from the increase will welcome this news. However, it isn’t as positive for those businesses already struggling to stay open in the current economic climate. Employers may need to consider the size of their workforce in order to remain solvent.

Income Tax and National Insurance

It was confirmed that both national insurance, personal tax and inheritance tax thresholds would remain frozen for an additional two years, until April 2028, (previously April 2026).

However higher earners will be affected with the £150,000 top income tax rate level as this will be reduced to £125,140.

Supporting Workforce Leavers

In his announcement, Hunt pledged to invest a staggering £280 million into the Department for Work and Pensions (DWP) in an effort to get adults who are no longer working, back into work, along with supporting the department in clamping down on benefit fraud. An additional £11 billion will be invested into benefits.

As part of his pledge to support the DWP, Hunt stressed his commitment to improving the prospects of securing employment for those who have left the workforce and will be undertaking reviews. Included in this initiative will be the requirement for those receiving Universal Credits to regularly meet with work coaches.

You can read the Autumn Statement here.

If you would like to discuss the Autumn Statement and how it may affect your business, or you would like to know more about how we can help you, get in contact with our team of experts today.

T: 0330 107 1037

E: contact@highperformanceconsultancy.com

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