The new world of employment

By the time we reach the new tax year on 6th April 2025, employers, both large and small will be subject to several increased requirements in their staffing responsibilites.

Apart from the well-documented increase in National Insurance Contributions, from 13.8% to 15%, there are numerous changes to employment law and the costs of employing people. For example, from 1st April 2025, the National Living Wage for those aged 21 and over will rise to £12.21 per hour. The National Minimum Wage will increase to £10 per hour for 18-20-year-olds and £7.55 per hour for 16-17-year-olds.

In addition to increases in NICs and the minimum wage, statutory sick pay will rise to £118.75 per week and will be payable from the first day of sickness absence. Employers must also offer zero-hour workers some guaranteed hours.

All of these increases inevitably lead to a significant rise in the costs of employing people. Taken together with the wide-ranging changes in employment law, they make for a challenging 2025 for all UK employers. However, it need not be total doom and gloom - how can employers mitigate these increases and find a slice of optimism in this new employment landscape?

One very positive action is to recruit an apprentice and/or encourage some of your existing employees to enrol in an apprenticeship programme. Anyone undertaking an apprenticeship programme under the age of 25 and earning less than £967.00 oer week or £50,270 per year means their employer does not have to pay employer NICs for that individual. depending on the number of employees undertaking an apprenticeship, this saving can be signifcant in overall staffing costs.

That's just one benefit - and when added to the long-term advantages of building a skilled workforce for the future, it represents a win-win solution to combat the challenges facing employers in the coming years and months. To bring a bit of sunshine into the new world of employment in 2025, spring into apprenticeship action.