Autumn statement – key employment announcements
Last week the Chancellor of the Exchequer, George Osborne delivered his Autumn statement. The government has also produced its 2015 spending review which sets out further detail about the Chancellor’s plans.
Key announcements which may be of interest to employers include plans for a new apprenticeship levy, expanding the ‘fit for work’ scheme and changes to employee tax. A summary of some of the key employment points in the Autumn statement are set out below:
From April 2017, employers will have to pay a levy of 0.5 per cent of their pay bill in order to fund apprenticeships. However, there will be an allowance of £15,000 which means that in practice only employers with a pay bill of £3million or more will have to pay. The levy will be collected through employers’ PAYE systems. The government hopes that the levy will raise £3bn by 2019/2020.
Public sector reforms
There will be a consultation on exit payments, aimed at reducing costs and increasing consistency across the public sector. There will also be a review of sickness absence across the public sector with the aim of reducing its impact on public service delivery
Strengthening ‘fit for work’
There will be a White Paper in 2016 setting out reforms aimed at improving support for people with health conditions and disabilities. The government aims to improve links to health services to help employees return to work more quickly
There will be a call for evidence to cover taxation arrangements in areas including; the provision of living accommodation, tax relief on travel and subsistence for those employed through personal service and umbrella companies, the operation of share schemes and salary sacrifice arrangements
Full details of the Chancellor’s Autumn statement can be found here
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