Spring Budget Key Employment Points and update on statutory rates of pay/Tribunal Awards
The Chancellor Jeremy Hunt announced the Spring Budget on the 15 March 2023. We have also included information on the latest increases to National Minimum Wage/National Living Wage and the Employment Tribunal Rates that will come into force in April 2023.
Key employment related points from the Spring Budget:
- Plans announced to introduce a Universal Support Programme in England and Wales to find suitable employment for those with disabilities and/or on long-term sick. Further measures are also being introduced to address the main causes of ill health related activity, including tailored employment support in mental health and musculoskeletal health services, and improved access to digital resources and health checks. This may increase those who are able to work but also offer further support for people on long term absence.
- The work capability assessment for disabled people will be abolished. Benefits entitlement will also be separated from ability to work. It is hoped that this will encourage disabled people to return to work without fear of losing their benefits. Again, something which may increase the number of people available to apply for the many vacancies we are seeing at the moment.
- Work Coach support and work search requirements will increase for those who are in receipt of Universal Credit to assist them back into higher earning roles.
- Tax relief on pensions is also set to increase. The Lifetime Allowance charge will be removed from April 2023 and abolished from April 2024. The annual allowance will also be increased to £60,000. It is hoped that this will encourage high skilled individuals to remain in work for longer or encourage those who have retired to return to work on a full or part time basis. This is hoped to assist the NHS but it is also thought will assist in other skilled industries where highly skilled workers have been hard to find in younger age groups.
- 30 hours a week of free childcare for 38 weeks a year will be provided for eligible parents of children aged 9 months to 3 years, in addition to the 30 hours a week already provided to eligible working parents of 3 to 4 year olds. Care providers will also receive further Government funding to continue delivering free hours in England. Further details will be provided regarding this once the information is released to confirm those eligible and the exact dates it will be available.
- A new wraparound pathfinder scheme to support the expansion of school-based childcare either side of the school day. Those on Universal Credit will also benefit from increased childcare support. Those on Universal Credit can include some lower paid workers.
- The Migration Advisory Committee’s interim recommendation to add 5 construction occupations to the Shortage Occupation List have been accepted. This will ensure the UK labour market has access to overseas skilled workers when needed.
- Further education and training support will be provided to ensure people have the skills and knowledge required to get higher skilled and paid jobs. The Government will introduce T Levels, Skills Bootcamps and the Lifelong Loan Entitlement to encourage post-18 education. The Government are also looking to introduce Returnerships for those over 50.
Increases to statutory payments and Employment Tribunal Rates:
Although not announced as part of the budget, the following are also key changes to bear in mind. From the 01 April 2023, the National Minimum Wage will increase. The rates that which apply from the 01 April 2023 are:
|
Current rate |
Rate from 01 April 2023 |
| National Living Wage |
£9.50 |
£10.42 |
| 21 – 22-year-old rate |
£9.18 |
£10.18 |
| 18 – 20-year-old rate |
£6.83 |
£7.49 |
| 16 – 17-year-old rate |
£4.81 |
£5.28 |
| Apprentice rate |
£4.81 |
£5.28 |
The Employment Rights (Increase of Limits) Order 2023 has also been published, setting out the annual increase in tribunal limits are. The increases are:
|
Current limit |
Limit from 06 April 2023 |
| Compensatory Award |
£93,878 |
£105,707.00 |
| A ‘weeks’ pay’ (for basic award and redundancy payments) |
£571 |
£643 |
Sheffield HR Forum – 19 April 2023
We will consider the key announcements made as part of the Spring Budget together with all the other employment law updates that have occurred recently or that are coming in over the coming months during our next HR Forum event in Sheffield. The event is taking place at the Grippe’s Glide House in Sheffield (free parking is available) on 19 April 2023.
If you would like to attend, please book your place by following the link below. Please use the link below to register your place.
Sheffield HR Forum April 2023 | BRM Solicitors – Law Firm in Sheffield and Chesterfield (brmlaw.co.uk)
Please contact the Employment Law Team for further information regarding the Spring Budget and how this may impact you or your business.
Amy Hallam
Head of Employment
t: 0114 3496989
e: amy.hallam@brmlaw.co.uk
Ellie Leatherday
Senior Solicitor
t: 01246 564002
e: ellie.leatherday@brmlaw.co.uk
