30 October 2024
In Labour’s first financial statement in 14 years, Rachel Reeves stated that she was delivering a Budget to fix the foundations of the economy and deliver change by protecting working people.
The biggest announcement was the increase in the rate of Employer National Insurance from 13.8% to 15% from 6 April 2025. The Secondary Threshold – the level at which employers become liable to pay national insurance on each employee’s salary – will reduce from £9,100 per year to £5,000 per year.
Other significant announcements included an increase in the National Living Wage from £11.44 to £12.21 an hour from April 2025, a rise in the National Minimum Wage for 18–20-year-olds to £10 an hour, and a 4.1% increase to the state pension. The Chancellor also announced a £22.6bn increase in the day-to-day health budget to deliver an additional 40,000 elective appointments per week.
View the full member briefing (PDF, 280 KB)