Autumn Budget 2024: Labour hikes employers' NI by 1.2 percentage points

Threshold lowered to £5,000

Jen Frost
clock • 3 min read

Labour has moved forwards with an employers' National Insurance (NI) hike of 1.2 percentage points from April 2025 in the Autumn Budget, with the threshold lowered and changes to employment allowance.

Employers pay a 13.8% National Insurance contribution on employees' earnings above £175 a week. Under plans announced today, this will be increased to 15%. It is understood the measure will generate around £25bn, which is over half the £40bn of overall tax rises announced in the Budget.  "I know that this is a difficult choice. I do not take this decision lightly," Chancellor Rachel Reeves said. "We are asking businesses to contribute more, and I know that there will be impacts of this measure felt beyond businesses too, as the OBR has set out today." The threshold at which employe...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Regulation

Closing the protection gap will require advisers to think differently

Closing the protection gap will require advisers to think differently

“We won't close it through the actions of one adviser, one firm or one network”

Toni Smith
clock 30 September 2026 • 4 min read
Triple lock to change in 2030: Burnham

Triple lock to change in 2030: Burnham

PM said state pension to ‘rise at least by prices [inflation] or 2.5%’

Isabel Baxter
clock 29 September 2026 • 3 min read
Burnham to propose social care plans at general election

Burnham to propose social care plans at general election

Aims to be preventative

Jaskeet Briah
clock 28 September 2026 • 2 min read