Small Businesses: Employers' Contributions
The question
To ask the Secretary of State for Business and Trade, what assessment he has made of the potential impact of the (a) Employment Rights Bill and (b) changes to employers' National Insurance Contributions on small and medium-sized businesses.
Answered by Kate Dearden
My department has published a robust set of Impact Assessments that provide a comprehensive analysis on the potential impact of the Employment Rights Bill, available here: https://www.gov.uk/guidance/employment-rights-bill-impact-assessments These include assessments on the impacts to micro, small and medium businesses in line with the Better Regulation Framework.
The Government decided to protect the smallest businesses from the changes to employer NICs by increasing the Employment Allowance from £5,000 to £10,500. This means that this year, 865,000 employers will pay no NICs at all, and more than half of all employers will either gain or will see no change.
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