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.

National insurance

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.

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