Employment law – Budget update 2017

November 23, 2017

The Chancellor’s 2017 Autumn Budget : Employment-related announcements

The Chancellor’s 2017 Autumn Budget speech on Wednesday 22 November provided few substantial employment-related announcements. However, the following points will be of interest:

The Government has accepted the recommendations of the Low Pay Commission (LPC) for increasing the national living wage (NLW) and the national minimum wage (NMW). Accordingly, from April 2018 the Government will increase the NLW, which applies to workers aged 25 and over, by 4.4% from £7.50 to £7.83. At the same time, the NMW rates will be increased as follows:


  • from £7.05 to £7.38 for 21 to 24 year olds
  • from£5.60 to £5.90 for 19 to 20 year olds
  • from £4.05 to £4.20 for 16 and 17 year olds
  • from £3.50 to £3.70 for apprentices


In line with its commitment to raise the personal allowance (PA) to £12,500 and the higher rate threshold (HRT) to £50,000 by 2020, the Government announced that in the 2018/19 tax year the PA and HRT will be increased to £11,850 and £46,350 respectively. The Government also announced that, with effect from April 2018, there will be no benefit in kind charges on electricity that employers provide to charge employees’ electric vehicles. The budget report further details a number of changes the Government will make to the taxation of employee expenses following a call for evidence that was published in March 2017.

Employment status
The Government will publish a discussion paper as part of its response to the Taylor review of employment practices, which will explore the case and options for reforming employment status tests, for greater clarity on employment rights and tax.

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