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Budget and Minimum Wage

6 November 2024 by S Douthwaite

​November 2024 Gold Group Recruitment & Employment Newsletter

This month we cover;

·         UK Budget – The potential for the UK jobs market

·         US Upcoming elections – How will this effect the US Work Force

·         UK Construction – Latest news on the projects that count

·         US Life Sciences – Alive and kicking!

 

1. UK Employment & Budget Updates: Key Changes Affecting Recruitment

The UK government recently released its 2024 budget, and several policies are set to impact the recruitment landscape, particularly for agencies and employers seeking to hire efficiently within a competitive market. Here’s what’s new:

Increased National Minimum Wage:

Current rates

These rates are for the National Living Wage (for those aged 21 and over) and the National Minimum Wage (for those of at least school leaving age). The rates change on 1 April every year.

21 and over18 to 20Under 18Apprentice

April 2024 (current rate)£11.44£8.60 £6.40£6.40

April 2025 £12.21 £10.00 £7.55 £7.55

Apprentices

Apprentices are entitled to the apprentice rate if they’re either:

aged under 19

aged 19 or over and in the first year of their apprenticeship

 New Apprenticeship Incentives: To foster skills development, the government is enhancing apprenticeship funding by 15%, focusing on sectors with critical skill shortages, including construction, healthcare, and tech. Employers will receive incentives for hiring apprentices under 25, making it a valuable avenue for businesses looking to bring in new talent affordably.

Pensions & Employer Contributions: The government has introduced a small increase in the mandatory employer pension contributions, now at 4.5% (up from 3%). This aims to provide stronger retirement security for workers but will require businesses to budget for these additional costs.

Tax Relief for Training Programs: Companies investing in reskilling and upskilling their workforce, especially in high-demand areas like digital and technical skills, will benefit from increased tax relief. This aligns with the government’s commitment to improving job quality and reducing skill gaps.

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