The Chancellor's Autumn Statement followed a period of unprecedented political turmoil, with economic clouds gathering. It's no surprise to anyone that taxes are due to increase and spending cuts are to be made, as this was heavily trailed. But employers will need to ensure that they and their payroll teams are on top of the details of changes due to come into force in April 2023.
Minimum wage: The National Living Wage (paid to workers aged 23 and over) will increase to £10.42 from April 2023, an increase of nearly 10%. In the same vein, the rate for 21-22 year olds will increase to £10.18 an hour, for 18-20 year olds to £7.49 an hour, for 16-17 year olds to £5.28 an hour and the apprentice rate to £5.28 an hour. The accommodation offset will be increased to £63.70 a week.
Employee tax thresholds: From April, the threshold for paying the top rate of 45% will be £125,000 rather than £150,000.
National Insurance: The planned increase to National Insurance (the Health and Social Care Levy) is not going ahead - this was originally announced by former Prime Minister Liz Truss and has now been confirmed by the current Chancellor.
Rates for statutory payments (SSP, statutory maternity/paternity/adoption/shared parental leave etc.), statutory redundancy payments and the cap on unfair dismissal compensation will also increase from April 2023, with full details of the new rates available here.
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