A tax-free childcare scheme is to be introduced in early 2017. Families where both parents work and each parent earns less than £100,000 per year will be eligible to receive 20% of their yearly childcare costs.
National Minimum Wage and the National Living Wage
Starting in April 2017 future changes to the hourly rate of the National Minimum Wage and the National Living Wage will take place at the same time in April each year.
The national living wage (for workers who are aged 25 and over) will rise from £7.20 to £7.50 on 1 April 2017.
The national minimum wage for workers aged at least 21 but under 25 will rise from £6.95 to £7.05 per hour. The rate for workers who are aged at least 18 but under 21 will rise from £5.55 to £5.60 per hour, the rate for workers aged 16 or 17 will rise from £4 to £4.05 per hour, and the apprentice rate will increase from £3.40 to £3.50 per hour. The accommodation offset will increase from £6 to £6.40.
Gender pay gap reporting
Employers’ duties under gender pay gap reporting will commence on 5 April 2017. The reporting requirements will apply to employers with 250 or more employees in the private and voluntary sectors.
Apprenticeship levy
On 6 April 2017 an apprentice levy is to be introduced. Large employers (those who have an annual wage bill of more than £3 million) will have to pay a levy of 0.5% of their wage bill to fund apprenticeships.
Income tax allowances and thresholds
On 6 April 2017 the personal income tax allowance will rise to £11,500 and the higher rate of tax threshold will rise to £45,000.
NICs
The lower earnings limit for national insurance contributions will increase on 6 April 2017 to £113 per week.
Auto enrolment
The automatic enrolment earnings trigger for 2017/18 will remain fixed at £10,000. The qualifying earnings band will be between £5,876 and £45,000.
SSP, SMP, SPP, ShPP and SAP
The Government plans to increase statutory sick, maternity, paternity, shared parental and adoption pay from 2 April 2017 as follows:
· Statutory Sick Pay (SSP) - £89.35
· Statutory maternity pay (SMP) and (maternity allowance) - £140.98
· Statutory paternity pay (SPP) - £140.98
· Statutory shared parental pay (ShPP) - £140.98
· Statutory adoption pay (SAP) - £140.98
Tier 2 migrant workers
In April 2017 the salary threshold for sponsoring workers under tier 2 of the points-based systems increases to £30,000. An immigration skills charge will also be introduced in April 2017 which will mean that employers that employ migrant workers under tier 2 will be subject to a levy of £1,000 per certificate of sponsorship per year.
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