Changes to National Insurance and Minimum Wage

The recent changes to national insurance involve an increase in the employer’s rate from 13.8% to 15%, alongside a significant drop in the earnings threshold from £9,100 to £5,000. This change adds approximately £615 per employee in costs for businesses, particularly affecting industries like hospitality where the minimum wage is also rising. The minimum wage will increase for those over 21 from £11.44 to £12.21, and for those aged 18 to 20, from £8.60 to £10.00. While this increase can improve conditions for workers, it also poses a financial burden on employers who may pass on these costs through price increases or reduced benefits for their staff, especially in sectors facing economic pressure.