Autumn Budget 2024 

From a people perspective, the 2024 budget has clearly defined a shift in direction, along with reconfirming a strong ambition to ‘Make Work Pay’. From the offset this sets the scene for a transformative approach to employment and the costs associated with it.  

We have already experienced a rising expectation in recent months and years over what individuals expect of their employer, and the Autumn budget has firmly set us on a path to see this dynamic continue. Tying in with the proposed overhaul of employment rights introduced into parliament under the Employment Rights Bill earlier this month, on 10 October 2024. 

The rising costs of people and retaining talent will now continue to be a significant concern that must be fully considered in all organisations and sectors, all the way from major employers down to small independents and non-profits. Still reeling from coping with the cost-of-living crisis, businesses will now need to contend with competing factors, such as the confirmed increases to the national living wage, national insurance and the proposed overhaul of funding support available. 

Whilst this will undoubtedly place strain on budgets and operational priorities, we should also consider the opportunities, and this will require a flexible approach to people with change being a prominent factor. 

Key takeaways for HR:

• Plan ahead for the financial impact of set increases to wages and employer national insurance contributions. How will these increases impact you? From 01 April 2025 you can expect: 

• The minimum wage for over 21s to rise by 6.7%, from £11.44 to £12.21. 

• For 18 to 20-year-olds, the minimum wage will rise from £8.60 to £10. 

• Apprentices will get the biggest pay bump, from £6.40 to £7.55 an hour. 

• Employers currently pay National Insurance of 13.8% on a worker’s earnings above £175 a week, but this is set to increase to 15% and the threshold will reduce from £9,100 to £5,000. 

• Develop robust strategies to manage retention, rising expectations and competitive pressures. The emphasis on upskilling and career progression is more crucial than ever to maintain a competitive edge and investing in the development of your workforce will help to enhance skills to weather evolving market demands. 

• Evaluate funding opportunities where reliant, as changing government priorities will mean these require reconsideration and an alignment to expected employee focussed initiatives which support the fair working agenda.  

• Overall, you should plan to expect change: this is becoming a fundamental requirement to consistently develop resilience and an agile mindset within your team. While the full impact of the budget is explored further, there is also the dual challenge of adapting existing HR practices to align with the Employment Rights Bill as its measures are implemented over the next two years. Embracing flexible work arrangements and innovative HR practices will help you to adapt to budgetary constraints and developing a dynamic working environment. 

While some will struggle to align with these changes, this new approach from the budget also presents opportunities for innovation in talent management strategies, fostering a more agile and resilient workforce. 

As further details and implications from the budget become available, we will continue to refine our support to ensure alignment with these new directives. Our commitment remains steadfast in supporting you to support your team during what is undoubtedly a transitional time, we invite you to please reach out for support navigating these changes in your business or organisation.  

We’ve seen several key highlights announced aimed at driving economic growth through investment by the Chancellor, our tax experts explore the impact of these changes on you and your business in their full guide:

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