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8th March 2024
With Chancellor Jeremy Hunt’s announcement of the Spring Budget 2024, it is a pivotal time for employers to stay updated. As we approach an election and significant changes to employment law are on the horizon, being informed is vital. While the budget may not directly affect employers on a large scale, there are notable highlights, such as cuts to national insurance and adjustments to childcare.
National Insurance Cuts:
It’s no secret that National Insurance contributions are being reduced once again. Starting from April 6th, 2024, there will be an added 2% cut, bringing the NIC rate down to 8%. Employers are encouraged to consult the official guidance provided by the Treasury to understand how this affects both their business and their employees.
Child Benefit Thresholds:
In addition to changes in National Insurance, the government is revising Child Benefit thresholds. From April, the threshold for the High-Income Child Benefit Charge will increase to £60,000. Additionally, the charge rate will be halved, offering relief until an individual’s earnings surpass £80,000. Looking ahead, the government aims to transition to a new system based on household income by April 2026. Employees within these income brackets may find it beneficial to discuss salary or pension contributions with their employers.
Looking Ahead:
While the Spring Budget addresses fiscal matters, it also affects workforce management. Employers must stay wary about changes in employment law and capitalise on opportunities presented by the budget to better support their staff. Clear communication between employers and employees is crucial amidst impending changes, ensuring transparency and mutual understanding.
As we look towards the rest of 2024, employers can expect changes in various legislative areas, including:
Employers may also wish to consider the implications of the manifestos of the main political parties and explore initiatives such as Labour’s ‘A New Deal for Working People’.
For employers without access to HR support, the Spring of 2024 is a critical time to seek independent advice.
Conclusion:
As employers prepare for the impact of the Spring Budget 2024, proactive engagement and strategic planning are essential. With fiscal adjustments ahead, businesses must align their practices with evolving regulations and prioritise the well-being of their employees.
For professional HR support and guidance tailored to your business needs, consider partnering with Sapphire HR. Our HR Outsourcing Solutions cater to SMEs across all sectors, with specialists available to help you. To learn more about how Sapphire HR can help your organisation save compared to employing in-house HR, click here: HR Shared Service Plan | Sapphire HR (sapphire-hr.co.uk)
Here to Help, Not Replace Experts:
The information contained in this blog presented for general informational purposes only. While we strive to provide accurate and up-to-date content, legal and HR practices can evolve rapidly. This blog is not a substitute for professional advice.
For specific questions or concerns regarding your unique situation, we highly recommend taking professional advice and booking a consultation with a Sapphire HR Consultant. Our consultants are experts in the field and can provide tailored guidance to address your specific needs.
We aim to work truly in partnership with our client organisations and to develop a high-quality, competent HR Service for all clients, the HR Provider that they can rely on and who gets to understand the culture and vision of your business.
