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The budget and what it means for employers 

Published: 26 Nov 2024

Graphic that says The budget and what it means for employers who are committed to being family-friendly

The long-awaited budget finally landed at the end of October. With a focus on ‘delivering change by protecting working people’ the budget introduced policies that will impact businesses more directly. But beyond the headlines, what do the announcements mean for employers who are committed to being family-friendly? 

Work 

The National Minimum Wage will increase from April 2025, rising from £11.44 to £12.21 an hour for over 21’s, and from £8.60 to £10 an hour for 18-to-20-year-olds. 

But more significantly for businesses, there will be a change in how much National Insurance employers will pay, rising from 13.8% to 15% for any employees who earn more than £5,000 a year, which has been lowered from £9,100 a year.  

Small businesses will, however, be able to manage the rising National Insurance cost with the a doubling of the Employment Allowance from £5,000 to £10,000, which is expected to impact 865,000 smaller organisations. 

Childcare 

The government has kept to its pre-budget pledge of £1.8 billion to expand childcare provision. Whilst this move which is cautiously welcomed, as it could enable many more parents enter and stay in employment, any funding promises should keep pace with rising National Minimum Wage and National Insurance contributions in order for families to truly benefit. 

Carers  

There was some good news for carers, who are now able to work more hours whilst still receiving Carers Allowance, a critical benefit for those providing unpaid care for their loved ones. The limit will be increased to the equivalent of 16 hours a week at minimum wage, allowing them to earn up to £10,000 a year. The challenge for carers is finding the right amount of employment, and so employers who make part-time or flexible work available are supporting carers to increase their income whilst carrying out a vital role.  

The government has also promised a review of Carers Leave which could see carers being entitled to paid Carers Leave rather than the current statutory allowance of 5 days unpaid, making it more financially feasible for those who provide care to loved ones to take the leave they need.  

For employers committed to building a family-friendly workplace, these budget changes bring both challenges and opportunities. Rising National Insurance contributions and minimum wage increases will undoubtedly place pressure on many, especially smaller businesses. However, the doubled Employment Allowance could ease some of the financial impact, and initiatives supporting carers may strengthen the workforce by helping people balance work with caring responsibilities. As we navigate these changes, it’s crucial for employers to consider the broader role they play in supporting working families, ensuring that policies truly benefit those balancing work and home life. 
 
If you would like support to make sure your organisation is working in the most family-friendly ways to manage these changes, you can contact Working Families, or speak to your Relationship Manager if you’re already a member.  

  • Group of work colleagues

    Employer Membership

    A Working Families membership for employers will give you the tools, guides and policies you need to implement agile, flexible and family-friendly business practices.