Companies: Recruitment
The question
To ask the Secretary of State for Business and Trade, if he will make an assessment of the potential impact of changes to (a) the minimum wage and (b) employer National Insurance contributions on the ability of companies to hire workers for long term skills investment.
Answered by Justin Madders
We are committed to building an economy that works for everyone and considers the impacts of all policies that we introduce.
We accepted in full the recommendations of the Low Pay Commission who considered the impact on business, competitiveness, the labour market, wider economy and the cost of living. A full Impact Assessment on NMW was published and received a Green ‘fit for purpose’ from the Regulatory Policy Committee on Tuesday 4 February 2025.
The Office for Budget Responsibility’s October 2024 forecast includes the impact to changing employer National Insurance contributions and expects the unemployment rate will fall to 4.1% next year and remain low until 2029. Employers of those under the age of 21 and apprentices under the age of 25 receive 100% employer National Insurance relief on salaries up to £50,270.
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