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 made 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...
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