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

Jen Frost
Author spotlight

Jen Frost

Editor at Professional Adviser

More on Regulation

FCA publishes protection market overview

FCA publishes protection market overview

Prelude to market study findings

Cameron Roberts
clock 17 September 2025 • 2 min read
UK unemployment rate continues to stall in August

UK unemployment rate continues to stall in August

Economic inactivity at 21.1% in May to July 2025

Michael Nelson
clock 16 September 2025 • 3 min read
The COVER Review: A budget on the horizon, private healthcare and product launches

The COVER Review: A budget on the horizon, private healthcare and product launches

Week commencing 1 September 2025

COVER
clock 05 September 2025 • 1 min read