UK Taxes on Minimum Wage Work Nearly Double in a Decade
6 days, 5 hours ago

UK Taxes on Minimum Wage Work Nearly Double in a Decade

Live Mint  

-- Taxes on minimum wage jobs will have effectively doubled in just a decade after the Labour government’s increased payroll levy comes into effect, according to research by a conservative think tank. The Centre for Policy Studies said the combined amount of tax paid by employees and employers will rise to more than 21% of salary for minimum wage workers from April, up from 11% in 2015. The think tank said the tax increase coupled with another sharp rise in the minimum wage mean it will cost £2,367 more to employ one of the UK’s lowest paid full-time workers than it did in 2024. CPS said this “tax wedge” will grow further when Labour pushes through a hike in employers’ national insurance contributions in the next fiscal year, as Prime Minister Keir Starmer seeks to stabilize the country’s finances and pump more money into public services.

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History of this topic

Difficult decisions for employers after national insurance hike, says minister
3 weeks, 1 day ago

Difficult decisions for employers after national insurance hike, says minister

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Employers face “difficult decisions” as …

MPs support national insurance hike for employers amid ‘jobs tax’ warning
1 month ago

MPs support national insurance hike for employers amid ‘jobs tax’ warning

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Government moves to increase employer …

UK's unemployment rate notches up
1 month, 3 weeks ago

UK's unemployment rate notches up

China Daily  

Workers cross London Bridge, with the City of London financial district seen behind, during the morning rush-hour in London, Britain, Jan 4, 2022. "These figures come against a backdrop of rising concern about spiraling employment costs, which are set to increase following last month's national insurance contributions rise, the employment rights bill, and the latest increase in the national living …

Pay growth slumps to near four year low
2 months ago

Pay growth slumps to near four year low

The Telegraph  

Pay growth has slumped to its lowest pace since February 2021 as bosses warn Rachel Reeves’ Budget tax raid will hit hiring. Permanent wage growth dropped from 52.8 in September to nearly a four-year low of 52.5 in October, just before the Chancellor’s Autumn Statement, according to the KPMG and REC UK Report on Jobs index. Demand for staff fell …

What the Budget means for different ages: From renters and families to the retired
2 months ago

What the Budget means for different ages: From renters and families to the retired

Daily Mail  

Rachel Reeves's £40 billion tax bonanza will affect the financial wellbeing of millions of households for years to come. Smash-and-grab: Rachel Reeves's £40 billion tax bonanza will affect the financial wellbeing of millions of households for years to come Young workers, renting and first-time buyers First-time buyers could face paying thousands more in stamp duty after Rachel Reeves lowered key …

Employer national insurance hike to slow hiring and wage growth, critics say
2 months, 1 week ago

Employer national insurance hike to slow hiring and wage growth, critics say

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The Chancellor has admitted that …

Millions of working people will suffer from Reeves’s first Budget, warns OBR
2 months, 1 week ago

Millions of working people will suffer from Reeves’s first Budget, warns OBR

The Telegraph  

Millions of working people will suffer from Rachel Reeves’ Budget tax raid, the Government’s fiscal watchdog has warned. Workers will pay for 80pc of the Chancellor’s increase in employer National Insurance in the long term through lost wage increases and lower income, according to the Office for Budget Responsibility. Homeowners also face hundreds of pounds more in mortgage bills, with …

Budget 2024: Pay for 800,000 freelancers could be hit if employers’ tax rises, experts say
2 months, 1 week ago

Budget 2024: Pay for 800,000 freelancers could be hit if employers’ tax rises, experts say

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ …

Boost for low-paid as minimum wage set to rise by 6% in Budget
2 months, 1 week ago

Boost for low-paid as minimum wage set to rise by 6% in Budget

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Rachel Reeves will become the first woman to deliver a Budget The minimum wage, or …

Keir Starmer tells Brits they face a 'harsh reality': Prime Minister issues a new tax warning as Labour's Budget is set to batter employers with a major national insurance rise
2 months, 1 week ago

Keir Starmer tells Brits they face a 'harsh reality': Prime Minister issues a new tax warning as Labour's Budget is set to batter employers with a major national insurance rise

Daily Mail  

VAT on private school fees and non-dom crackdown - likelihood 10/10 The Labour manifesto committed to scrapping non-dom status, adding VAT to private school fees and increasing stamp duty on buyers from abroad. Employer national insurance - 9/10 Rachel Reeves looks almost certain to increase employer NICs, despite claims it is a 'straightforward breach' of the Labour manifesto. Capital gains …

Reeves to hand workers pay rises of more than triple rate of inflation
2 months, 1 week ago

Reeves to hand workers pay rises of more than triple rate of inflation

The Telegraph  

Tina McKenzie, of the Federation of Small Businesses, said: “Any increase to the NLW must be accompanied with powerful government measures to help small businesses create and sustain jobs. Almost four in five of small business employers say the Employment Allowance should rise in line with the NLW every year.” Ms Reeves decision to raise the minimum wage will be …

Real living wage goes up: Who will get the new amount?
2 months, 1 week ago

Real living wage goes up: Who will get the new amount?

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ /verifyErrors }} The new rate …

What could an increase in employer national insurance mean for businesses?
2 months, 3 weeks ago

What could an increase in employer national insurance mean for businesses?

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Ms Reeves and Sir Keir Starmer have declined to …

Shrinking workforce costing taxpayers £16bn a year
3 months, 3 weeks ago

Shrinking workforce costing taxpayers £16bn a year

The Telegraph  

Britain’s worklessness crisis is costing taxpayers £16bn a year through lost tax revenue and an inflated benefits bill, top economists have warned. The Institute for Employment Studies and the Commission on the Future of Employment Support warned that the country’s workforce was shrinking at the fastest rate since the 1980s, leading to a shortfall in employment-related taxes. “The UK is …

Reform migrant tax plan would force employers to pay more for foreign workers
7 months, 1 week ago

Reform migrant tax plan would force employers to pay more for foreign workers

The Telegraph  

Britain wants new solutions to immigration crisis For decades now, Britain’s economy has been hooked on cheap foreign labour, driving down wages and lowering our productivity. This is why Reform is proposing a new employer immigration tax to incentivise businesses to employ British workers over their foreign counterparts. Under Reform’s employer immigration tax, businesses will have to pay a higher …

Why Britain is leaving Europe behind on pay – and becoming more like the US
7 months, 3 weeks ago

Why Britain is leaving Europe behind on pay – and becoming more like the US

The Telegraph  

One reason is unemployment: it is significantly lower in the UK than that in the eurozone, pointing to a tight jobs market that keeps wages high. George Buckley, economist at Nomura, says: “It could be that those coming in from Europe were low-wage and they were acting to reduce pay pressures in parts of the economy, whereas these people could …

Middle classes will still be worse off despite Hunt’s tax cuts, says IFS
10 months ago

Middle classes will still be worse off despite Hunt’s tax cuts, says IFS

The Telegraph  

Middle-class earners will still be paying more tax despite Jeremy Hunt’s £10bn National Insurance cuts, the Institute for Fiscal Studies has said. Anyone earning more than £60,000 faces a bigger tax bill this year because the Chancellor’s stealth income tax raid will cost them more than they will gain from reductions to other taxes on income. A person earning £61,000 …

UK tax burden remains set for post-war record high, despite cuts
1 year, 1 month ago

UK tax burden remains set for post-war record high, despite cuts

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ …

Jeremy Hunt confirms pay boost for nearly 3million workers as living wage rises to more than £11 an hour
1 year, 1 month ago

Jeremy Hunt confirms pay boost for nearly 3million workers as living wage rises to more than £11 an hour

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. The chancellor said move would “end low pay in this …

100,000 more people dragged into paying higher rate tax in 2020/21
1 year, 10 months ago

100,000 more people dragged into paying higher rate tax in 2020/21

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. The number of higher rate taxpayers increased by 100,000 …

UK strikes hit a 30-year high as inflation erodes pay
1 year, 10 months ago

UK strikes hit a 30-year high as inflation erodes pay

CNN  

London CNN — The United Kingdom lost more working days to strikes in 2022 than in any year since 1989, as employees walked out in large numbers over pay amid soaring living costs. Real pay falls The UK government has so far refused to grant public sector workers higher pay awards, arguing that doing so risks making the inflation problem …

Employees will have 3.7 percent more of their salary next year
2 years ago

Employees will have 3.7 percent more of their salary next year

NL Times  

Employees with an average income will keep 3,7 percent more of their salary next year. Due to changes in tax regulations, they will retain 91 euros more net per month of their gross salary of 3086 euros, as calculated by payroll service provider ADP. People on minimum wage or just above will benefit even more, because the net minimum wage …

Tories increase taxes, cut spending as recession looms
2 years, 1 month ago

Tories increase taxes, cut spending as recession looms

The Hindu  

The Rishi Sunak government announced a £55 billion “consolidation” package of tax hikes and spending cuts in an attempt to get Britain’s public finances back on track partly to undo the damage caused by former Prime Minister Liz Truss’s September ‘Mini-Budget’, which had startled markets. The ‘Autumn Statement’, which was a response to the soaring cost of living, high energy …

UK’s Trades Union Congress calls for large rise in minimum wage
2 years, 4 months ago

UK’s Trades Union Congress calls for large rise in minimum wage

Al Jazeera  

The call for the rise of the minimum wage to 15 pounds an hour comes amid a series of strikes. Britain’s Trades Union Congress has called for action from the government to set about increasing the minimum wage to 15 pounds an hour “as soon as possible”. Postal deliveries are also set to be disrupted due to strikes by Royal …

UK gives below-inflation pay rises for public-sector workers
2 years, 5 months ago

UK gives below-inflation pay rises for public-sector workers

Al Jazeera  

Millions of workers – including police, doctors and teachers – are to receive below-inflation pay rises as part of a review that comes amid soaring prices and growing industrial unrest. The United Kingdom has announced below-inflation pay rises for millions of workers including police, doctors and teachers as part of a pay review for public-sector staff that comes amid soaring …

Labor formally submits for minimum pay rise of at least 5.1 per cent to Fair Work Commission
2 years, 7 months ago

Labor formally submits for minimum pay rise of at least 5.1 per cent to Fair Work Commission

ABC  

Labor has officially backed a pay increase for low wage workers in a formal submission made today to the nation's wage authority. Key points: Labor has recommended a 5.1 per cent increase for low paid workers The party committed to the increase at the election despite Coalition resistance The Fair Work Commission will determine a wage increase this month The …

More substantial minimum wage increase set for next year: Report
2 years, 7 months ago

More substantial minimum wage increase set for next year: Report

NL Times  

The minimum wage will rise more quickly than the Cabinet previously announced as part of an effort to improve purchasing power of people in lower income categories, broadcaster NOS reported. The four political parties which joined together to form the Cabinet previously agreed to increasing the minimum wage in 2024 and in 2025 by a combined total of 7.5 percent. …

National insurance increase: What the new tax rise means for you
2 years, 9 months ago

National insurance increase: What the new tax rise means for you

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. What I’m telling people is, if you want to fund our fantastic NHS, we …

Pay rises failing to keep up with the cost of living, ONS figures show
2 years, 11 months ago

Pay rises failing to keep up with the cost of living, ONS figures show

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Average pay rises are failing to keep up with the …

Planned rise in minimum wage ‘unaffordable’ after pandemic
4 years, 4 months ago

Planned rise in minimum wage ‘unaffordable’ after pandemic

The Telegraph  

Britain may be unable to afford a planned increase to the national living wage as a result of the Covid-19 pandemic, The Telegraph can disclose. The commission could trigger the emergency brake if evidence suggests that planned rises would be “damaging for the lowest-paid workers”. Our contribution to help steer a path through the complexity will be to provide a …

National living wage hike is justified despite impending recession, says think tank
4 years, 9 months ago

National living wage hike is justified despite impending recession, says think tank

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Wednesday’s hike in the adult …

UK's sharp rises in minimum wage did not hurt jobs or increase prices, government study finds
4 years, 10 months ago

UK's sharp rises in minimum wage did not hurt jobs or increase prices, government study finds

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Britain's sharp rises in its minimum wage have not resulted in …

Minimum wage rise: Boris Johnson criticised by bosses over ‘biggest ever’ low pay increase
5 years ago

Minimum wage rise: Boris Johnson criticised by bosses over ‘biggest ever’ low pay increase

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Boris Johnson hailed the “biggest ever” increase in the official wage floor – a hike …

Two-fifths of workers have pay affected by surging minimum wage
5 years ago

Two-fifths of workers have pay affected by surging minimum wage

The Telegraph  

An unprecedented two-fifths of workers have been affected by the minimum wage as a surging lower limit boosts pay but piles pressure on small businesses. More than 1.6m workers are now on the so-called national living wage, which is set by the state and is due to rise by 51p to £8.72 per hour in April. As a result, the …

Brexit latest news: Sajid Javid announces plans to raise national living wage to £10.50 and lower age limit to 21
5 years, 3 months ago

Brexit latest news: Sajid Javid announces plans to raise national living wage to £10.50 and lower age limit to 21

The Telegraph  

Mike Cherry, national chairman of the Federation of Small Businesses, said: “While it is welcome that the Chancellor is giving businesses five years to adapt, this increase will leave many small employers struggling and, without help, could make some small firms unviable. “Those in sectors with tight margins and which are heavily labour-dependent, such as the care sector, retail or …

UK wage growth picks up to 3.4 per cent but vacancies fall again, official data shows
5 years, 5 months ago

UK wage growth picks up to 3.4 per cent but vacancies fall again, official data shows

The Independent  

Sign up to our free Brexit and beyond email for the latest headlines on what Brexit is meaning for the UK Sign up to our Brexit email for the latest insight Sign up to our Brexit email for the latest insight SIGN UP I would like to be emailed about offers, events and updates from The Independent. Total pay, including …

‘Worrying’ rise in number of people being paid below minimum wage, study finds
5 years, 8 months ago

‘Worrying’ rise in number of people being paid below minimum wage, study finds

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy A “worrying” number of workers …

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