Autumn statement: Key financial changes for workers
The government today outlined some key financial changes for workers in 2024 as part of this year’s autumn statement.
Firstly, the 12% rate of employee national insurance contributions will be cut to 10% from 6 January 2024. This will reportedly affect 28 million people across the UK.
In addition, class 2 national insurance paid by self-employed workers will be abolished, while class 4 contributions will be cut by 1 percentage point.
National living wage
As pre-announced, the national living wage will increase to a minimum of £11.44 per hour (up from £10.42) and will be extended to those aged 21 and 22 for the first time. This change will take effect in April 2024.
These changes will mean tax savings for a great deal of workers, although the impact from an employment law perspective is overshadowed compared to the recently-published Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023, which are likely to come into force as soon as 1 January 2024.
We recently summarised these changes in a short article, which is available for you to read here.
2024 looks to be a year of much change in employment law. As always, we will keep you updated on the key developments.
If your business requires support from our expert team of employment lawyers, please don’t hestitate to contact us.Contact us
Our Legal 500-rated employment law team are experts in guiding businesses of all sizes and backgrounds through a range of issues that may arise.