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

Data protection is no barrier to collect and share vulnerability data: FCA

Data protection is no barrier to collect and share vulnerability data: FCA

Manufacturers and distributors expected to work collaboratively

Jaskeet Briah
clock 30 March 2026 • 2 min read
FCA opens simplified advice consultation

FCA opens simplified advice consultation

Follows targeted support work

Jen Frost
clock 26 March 2026 • 2 min read
FCA considers dropping suitability report requirement for life policies

FCA considers dropping suitability report requirement for life policies

Proposes moving from annual to periodic suitability reviews

Isabel Baxter
clock 26 March 2026 • 2 min read