UK Autumn Budget 2024: Key Changes and How HRGO Recruitment Can Help

With the Budget details now out, we know that many businesses and candidates are carefully evaluating how these announcements may impact their hiring, job applications, and workforce planning. Here are some of the most relevant changes, along with ways HRGO Recruitment can support you in navigating this evolving economic landscape. 

Budget Highlights & Implications 

1. Increases to National Living Wage and Minimum Wage 

• National Living Wage: For those aged 21 and over, the hourly rate will rise by 6.7% from £11.44 to £12.21 starting next April. 

• National Minimum Wage: For individuals aged 18 to 20, the hourly rate will increase from £8.60 to £10. 

What this Means for Employers and Candidates: 

• Employers should anticipate higher wage bills, especially in industries where a large proportion of workers are paid at or around the minimum wage level. 

• Candidates in lower-wage sectors can expect a more substantial take-home pay, making this an opportune time to secure new roles that match or exceed these updated rates. 

2. National Insurance (NI) Contribution Changes 

• Employer NI Contributions: Set to rise from 13.8% to 15% beginning in April 2025, creating a more significant cost impact on payroll. 

• Lowered NI Threshold: Employers will begin paying NI on workers’ earnings starting at £5,000 per year (£96 per week), down from the current threshold of £9,100. 

• Employment Allowance Increase: The Employment Allowance will increase from £5,000 to £10,500, offering some relief to small and medium-sized businesses. 

What this Means for Employers and Candidates: 

• Employers may need to review their workforce structures and recruitment budgets to absorb these increased costs. With the new Employment Allowance, smaller businesses could find some relief, particularly if they stay below the expanded threshold. 

• Candidates may find an evolving job market as businesses make strategic adjustments in light of increased payroll costs. 

3. Clampdown on Exploitative Umbrella Companies 

• The government has announced stricter measures against umbrella companies that exploit workers, providing a fairer landscape for contractors and temporary workers. 

What this Means for Employers and Candidates: 

• Employers who use umbrella companies to engage temporary staff should expect greater scrutiny and regulation, potentially changing how they hire temporary or contract workers. 

• Candidates working through umbrella companies can expect more transparency, compliance, and protection against unfair deductions or conditions. 

4. Investment in High-Growth Sectors 

• As part of a modern industrial strategy, the government is targeting nearly £1 billion for aerospace, over £2 billion for the automotive sector, and up to £520 million for a new Life Sciences Innovative Manufacturing Fund. 

What this Means for Employers and Candidates: 

• Employers in these industries may see opportunities for expansion and increased talent needs, creating demand for skilled candidates. 

• Candidates with expertise in aerospace, automotive, and life sciences will find promising job prospects in these sectors, with opportunities to contribute to ground-breaking projects. 

How HRGO Recruitment Can Support You 

1. Cost-Effective Recruitment Solutions in a Changing Tax Landscape 

• HRGO offers flexible, efficient recruitment options to help manage payroll and NI increases, including temporary and contract staffing. These options give businesses the flexibility to meet demand without incurring permanent payroll expenses. 

2. Sector-Specific Recruitment for High-Growth Areas 

• Our dedicated teams can help connect businesses with specialised talent, supporting workforce expansion in alignment with government investments. We also provide candidates with guidance on securing roles in these dynamic fields. 

3. Advocacy and Compliance Support for Candidates and Employers 

• For clients using umbrella companies, we offer guidance to ensure fair, compliant hiring practices and avoid issues with the clampdown. Candidates can rely on us to connect them with reputable employers that prioritise worker rights and fair pay. 

4. Strategic Workforce Planning 

• We work with businesses to navigate increased NI contributions and lower thresholds, helping you assess your budget for talent acquisition and find ways to optimise hiring costs through customised recruitment strategies. 

5. Supporting Candidates with New Wage and Sector Opportunities 

• Candidates can access roles that meet or exceed the increased minimum and living wage rates. For those with skills in high-growth sectors like life sciences or automotive, our recruitment consultants offer targeted guidance on transitioning to these promising fields. 

HRGO Recruitment is here to support you as you navigate these Budget changes. Whether you’re a business planning for the future or a candidate looking for new opportunities, our team has the expertise and resources to help you succeed. Reach out to us today for more information on how we can help you adapt to this evolving landscape.