Budget 2021: 8 things employers might have missed
There was a great deal to take in with Rishi Sunak’s long awaited budget yesterday so, having let the dust settle, here are eight things you may have missed:
1.‘Restart Grants’ and recovery funding
- Struggling high street shops, hospitality venues, salons, and gyms, amongst others, are expected to benefit from grants of up to £18,000 per business.
- A new Recovery Loan Scheme will be available for businesses of any size to apply for loans from £25,000 to £10 million.
- A £700 million recovery package has been budgeted to help businesses and venues in the sports and culture sectors.
2. Increased funding for apprenticeships
3. Family-friendly entitlements
- The Budget included a provision to allow parents of premature babies to claim an additional £160 per week for every week their child is in neonatal care, up to a maximum of 12 weeks. No further details were given about when this entitlement would be introduced.
- The Government will also be considering how a statutory carers' leave entitlement would be designed, with a consultation expected to be published shortly. It said the new entitlement would apply to employees with unpaid caring responsibilities for family members or dependants.
"This will support hardworking people to balance their caring responsibilities with work, particularly women who disproportionately undertake unpaid caring activities," the report says.
4. Employers' national insurance costs
- The employment allowance for national insurance contributions (NICs) will increase from £3,000 to £4,000 from April 2020.
- The Government will also introduce a "national insurance holiday" for employers of veterans in their first year of civilian employment. Employers will be able to claim this relief from April 2021.
5. Minimum wage to increase
6. Jobs in science and research
- Public R&D investment will be increased to £22 billion per year by 2024-25. HM Treasury said its Budget "supports the development of the high-tech, high-skill jobs of the future".
- A £400 million funding boost will be given in 2020-21 for "world-leading" research, infrastructure and equipment, while a further £300 million will be invested in experimental mathematical research to help attract global talent over the next five years. This will "double funding for new PhDs and boost the number of maths fellowships and research projects", it said.
- It was confirmed that the changes to the off-payroll working rules, commonly known as IR35, would go ahead in April.
8. Unsponsored Visa Scheme/ Immigration
- Since Brexit, employers wanting to hire talent from overseas have had to comply with the new points-based immigration system.
- For non-UK nationals moving to the UK, the Immigration Health Surcharge (IHS) will increase from £400 to £624, with a rate of £470 for children. For students and those entering on the youth mobility scheme the surcharge will rise from £300 to £470. This will also be applied to EEA nationals.
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