As Chancellor George Osborne delivered the first Conservative Party Budget in 18 years, what was the big news for employers to consider?
Comment – The National Minimum Wage will be £6.70 per hour in Oct so a 50 pence rise 6 months later will hit many employers who are paying minimum wage rates. Employers should be planning now how they will absorb these extra costs if they are currently paying NMW to over 25’s. Looking on the bright side though – at least Osborne didn’t announce a commitment to the rates currently used by the Living Wage Foundation (£7.85 p.h. regardless of age and £9.15 in London!)
- National Living Wage – a new National Living Wage of £7.20 an hour will be introduced in April 16. Paid to all workers over 25, rising to £9 an hour by 2020. Osborne stated that 2.5m of the lowest paid will get a pay rise.
- National Living Wage – a new National Living Wage of £7.20 an hour will be introduced in April 16. Paid to all workers over 25, rising to £9 an hour by 2020. Osborne stated that 2.5m of the lowest paid will get a pay rise.
- £3000 off NI contributions for employers.
- Apprenticeship levy charged to all big companies to encourage them to set up training schemes.
- Plans for 3m new apprenticeships.
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