The Autumn Statement’s priorities are “stability, growth and public services”. Employment law announcements were few and far between and are summarised below.
Increased minimum wage rates
Following recommendations from the Low Pay Commission, minimum wage rates will increase by 9.7% from 1 April 2023. The Government has stated that it is the largest ever cash increase in the UK’s National Living Wage.
The National Living Wage which applies to workers aged 23 and over, will rise from £9.50 to £10.42 per hour. The Government have stated that this translates to an annual pay rise of over £1,600 for a full-time worker.
The National Minimum Wage will increase as follows:
- aged 21-22: increase from £9.18 to £10.18;
- aged 18-20: increase from £6.83 to £7.49; and
- under 18 increase from £4.81 to £5.28.
The apprentice rate will increase for £4.81 to £5.28.
Increase in economically inactive working age adults
Specific reference was made to the increase in economically inactive working age adults, an increase of 630,000 since the start of the pandemic. The Work and Pensions Secretary, Mel Stride, has been tasked to review the issues holding back workforce participation, which is due to conclude in early 2023.
State pension age
The Government’s review of the state pension age will be published in early 2023.
The Office for Budget Responsibility (OBR) expects unemployment to rise to 4.9% in 2024, up from 3.6%.
Cap on bankers’ bonuses
There was no mention of a U-turn on bankers’ bonuses and it currently appears to be one of the few mini-budget policies which have survived. An in-depth look at the key considerations for firms in relation to the lifting of the bonus cap can be read here.
If you would like to discuss the Autumn Statement and how it may impact the way you manage your staff or your business, please reach out to your usual contact in our team or contact us at: Deloitte Legal Employment Law.
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