Autumn Budget Key Employment Points
The Chancellor Jeremey Hunt conducted the Autumn Budget on the 17 November 2022. In this article, our Employment Law Team review the key points affecting employers.
With inflation at the highest rate recorded in over 41 years, and the cost of living reaching unprecedented levels, the Autumn Budget set out the Government’s plan to prioritise “stability, growth and public services”.
Key employment-related points from the Autumn Budget
- The National Living Wage will increase by 9.7%, meaning the hourly rate will increase from £9.50 to £10.42 from April 2023. It is expected that the rise would amount to around an additional £1,600 annually for a full-time worker.
- State pensions will increase in line with inflation and a review of the state pension age will be published in early 2023.
- The 45% additional income tax rate bracket will fall from £150,000 to £125,140 in England from April 2023. It is estimated that an extra 232,000 people will be paying the additional rate of income tax as a result of the change.
- The income tax personal allowance, higher rate threshold and the main national insurance thresholds will be maintained at these levels for a further two years until April 2028.
- Dividend allowance will also be cut from £2,000 to £1,000 from April 2023, then to £500 from April 2024.
Other announcements made by the Chancellor during the Autumn Budget include new cost of living payments, emergency bill support changes and increased funding for the NHS and schools.
Autumn Budget HR Forum
On 24 November 2022 we are hosting a short online HR Forum employment law update in partnership with East Midlands Chamber of Commerce. This will cover the changes for employers arising from the Budget in more detail.
Book your place at the link below:
Autumn Budget Online HR Forum
Please contact the Employment Law Team for further information regarding the Autumn Budget and how this may impact you or your business.
Amy Hallam
Head of Employment
t: 0114 3496989
e: amy.hallam@brmlaw.co.uk
Ellie Leatherday
Senior Solicitor
t: 01246 564002
e: ellie.leatherday@brmlaw.co.uk
