The Chartered Institute of Payroll Professionals
News On Line
• Future-proofing the legislative and regulatory framework for payments o
Encouraging innovation while ensuring consumer protections and network resilience
As pay-on-demand grows in uptake from employers, a more robust and fluid payment network will be essential to companies that offer this to employees. As the UK invests more in its payment infrastructure it will open opportunity for innovation that will help the payroll profession deliver to its stakeholders.
Back to contents
National Living Wage (NLW) rumoured to rise to £9.50 per hour 25 October 2021
With the Budget looming on Wednesday, rumours are beginning to circulate that the NLW will increase from £8.91 per hour to £9.50. This would mark a 6.6% increase, over twice the consumer price inflation (CPI) rate of 3.1% announced last week. This speculated NLW would be higher than the £9.42 (plus or minus 7p) explored by the Low Pay Commission (LPC) in its consultation that ran to 18 June 2021. The official government response to this is yet to be released. An increase to £9.50 would match the real Living wage, a voluntary wage rate advised by the Living Wage Foundation.
While the increase will mean that many on low incomes could benefit by around £1,200 a year, the impact on employers’ wage liabilities will be substantial.
With coronavirus measures putting strains on the government to generate revenue we can expect more revelations to come in Wednesday’s Budget. To keep up to date with the latest information please check the CIPP’s budget hub.
Back to contents
Attachment of Earnings Order thresholds – Welsh consultation 26 October 2021
Attachment of Earnings Order thresholds – Welsh consultation 26 October 2021
The Welsh government has launched a consultation seeking views on increasing the Attachment of Earnings Order (AOE) thresholds.
The thresholds currently used were last updated in 2007, where the bands were uprated in line with the 36.5% increase of the Average Earnings Index (AEI). In 2010 the AEI was replaced by the Average Weekly Earnings (AWE) measure.
Between April 2006 and March 2021 AWE date has shown an increase in 41.8%, the Welsh government would like to increase the AOE thresholds in line with this.
The consultation asks if respondents agree with the proposed change and if the method is appropriate. They also seek views on how often the thresholds should be uprated, as there is currently no ruling on how often this process should be undertaken.
These changes would apply to Wales only.
Back to contents
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
Page 55 of 220
Made with FlippingBook - Online magazine maker