Current National Insurance Contributions (2021-22)
Employee main/higher rate – 12%/2%
Employer – 13.8%
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The Department for Business, Energy, and Industrial Strategy (BEIS) have launched a consultation to reform the Flexible Working Regulations. Consultation document, 'Making flexible working the default', was published on 23 September 2021. The government is keen to encourage genuine two-sided flexibility and reflect the changes to working which have been brought about by the pandemic.
The consultation sets out five proposals for reshaping the existing framework:
The consultation also covers measures to promote greater transparency about flexible working and the proposal to require employers to say whether jobs may be open to flexible working in the advert.
Even if implemented in full, the proposals do not make flexible working the default position, it will remain open to employers to reject any flexible working request. It does contain proposals to broaden the scope of the current right which has given employees with 26 weeks' continuous service the right to request flexible working since 2014.
The consultation closes on 1 December 2021 and seeks the views of both indivudals and businesses, including employers and employees, business representative groups and unions. Responses can be submitted online or by email to [email protected].
The government announced a temporary increase of 1.25% in rates of National Insurance contributions on 7 September 2021. The National Insurance Contributions (NIC) will return to current levels in April 2023 upon the introduction of a new health and social care levy.
The increase will apply to classes 1 (employee and employer) and 4 (self-employed), both main and higher rates. The flat rates for classes 2 (self-employed) and 4 (voluntary contributions) will not be increased. The rates will be legislated for in the Finance Bill 2022.
Employee main/higher rate – 12%/2%
Employer – 13.8%
Employee main/higher rate – 13.25%/3.25%
Employer – 15.05%
Employee main/higher rate – £9,568
Employer – £8,840
The rates are to be increased to help pay for the impact of the coronavirus pandemic on the NHS and to address the funding gap for health and social care. From April 2023 the increase will be legislated as a “health and social care levy” once the HMRC’s systems are updated. The existing reliefs for employers will continue to apply once the increase is separated into the levy. The revenues generated will be ringfenced for health and social care. The government will also increase the rates of dividend tax by 1.25% from April 2022.
HMRC will be responsible for administering the new levy, and it will be collected through Pay As You Earn and Income Tax Self-Assessment. Details of the plans are set out in the policy paper "Build Back Better: Our Plan for Health and Social Care".
The triple lock formula is used to guarantee pensioner’s incomes rise by either September’s rates of inflation, earnings growth or a guaranteed minimum of 2.5%, whichever is greater.
Due to the pandemic, concerns were raised that there was an artificial boost in wages which would have prompted an 8% rise in the state pension next year. However, the government have announced that legislation is to be introduced to ensure that for 2022-23, the basic and new State Pension increase will be the greater of 2.5% or in line with inflation. Thereby creating a ‘double lock’ with the average annual salary increasing being disregarded.
These measures are temporary, for one year only.
The Pregnancy Loss Pledge created by the Miscarriage Association aims to set out standards to ensure employees experiencing miscarriage including their partners, are supported and receive time off work.
Employers who sign up agree to:
A survey conducted by the Miscarriage Association showed that half of the respondents felt they returned to work before they were ready, with many not being told about their right to pregnancy-related leave. There is currently no statutory entitlement to paid leave for those who lose a baby before the 24th week of pregnancy. Beyond the 24th week mark, mothers are entitled to full maternity leave and both parents are entitled to two weeks of paid Parental Bereavement Leave.
The Office for National Statistics ('ONS') has reported that the number of vacancies between June to August rose above one million for the first time since records began in 2001. The figures also show that:
The surge in job opportunities, especially in transport and logistics, computing and telecoms, education, customer service and social care, appear to reflect changes in the labour market as the UK returns to normality post-pandemic however, the ONS also noted that the recovery has not been even, with areas such London and sectors such as hospitality still down with young generations facing biggest job losses. There are fears that these employee shortages will dampen growth linked to a rise in temporary vacancies suggesting employers need to provide employees with permanent contracts to provide security.
The Department for Education and HM Treasury have launched an online service intended to help businesses create apprenticeship opportunities so more people can get the jobs they want.
The aim is to make it easier for large employers that pay the Apprenticeship Levy to spend their levy funds. Levy paying employers could already transfer up to 25% of their annual levy to support other employers to take on apprenticeships, but now they can also advertise funding pledges which will enable more businesses to apply for funds, and so create increased apprenticeship opportunities. Employers will be able to specify the type of apprenticeships they wish to fund through filters such as location and sector enabling a much wider range of businesses to browse and apply for available funds. The employer can then create their transfer pledge through their apprenticeship service account which will be advertised via the online service.
