MY CIPP
PAYROLL news
The Low Pay Commission (LPC) launches new consultation on national minimum wage (NMW) and national living wage (NLW) THE LPC is an independent body tasked with advising the Government on what NMW levels should be. It conducts research on an annual basis through a variety of methods, to consider the wider impacts on employment when NMW rates change and to ensure there aren’t any adverse effects of making those changes. One of the data collection methods used is through a consultation. This year’s consultation is currently open and will close on 30 June 2025. The CIPP’s Policy and Research team will be responding to this consultation on behalf of our members and the wider community, but if you would like to respond yourself, you can do so here: https://ow.ly/vJZY50VNQzu. You can read the consultation in full here: https://ow.ly/ EZ9M50VNQx5. Leon’s thoughts “Money fascinated me from a young age. At 11, I was asking my dad what a mortgage was. By 16, I was desperate to earn. But pensions? I got curious early because I saw how hard my parents worked, and I wanted a different path for them and me. “When I met the Group Chief Executive Officer (CEO) of Lloyds Banking Group, I asked him his biggest financial regret. He said, ‘Not starting my pension until I was 30.’ That stuck with me. I made it a habit early on. “Now, every young person who joins Duvet Flip gets a breakdown of their payslip, pensions and automatic enrolment. Most of them have never heard of any of it. They’re blown away when they learn that pension contributions can be taken before tax is deducted. That small insight often flips their decision from ‘What’s the point?’ to ‘Why wouldn’t I?’ “The truth is, the earlier you start, the more power you give your future self. Risk is cheaper the younger you are. A strong pension pot later in life means less stress, more freedom and more choice. If you’re 18 right now, your future self is begging you to start. Even a small contribution sets the tone.”
Small pensions pot consolidator means retirement savings boost THE DEPARTMENT for Work and Pensions (DWP) recently published a press release which confirmed that reforms will prompt the consolidation of small pensions pots, meaning millions of savers will see a boost of £1,000 to their pension savings. The press release can be found here: https://ow.ly/CjIt50VNRji. The Pensions Minister, Torsten Bell, said: “We will automatically bring together people’s small pots into one high performing pension, reducing costs as well as hassle for savers. In time, this could boost the pension of an average earner by around £1,000 as part of our Plan for Change to put more money in people’s pockets.” The announcement was made following the work of the Small Pots Delivery Group, which the CIPP’s Jill Smith, Product Development Director, and Mathew Akrigg, Policy and Research Officer, were a part of. The Small Pots Delivery Group Report (https://ow.ly/si9X50VNRoR) provides a thorough overview of the changes, including the further legislative requirements: “Following Royal Assent of the Pension Schemes Bill it is the intention that through consultation with industry that regulations will be drafted during 2026 with elements of the legislation expected to come into force during 2027/2028. Duties on pension schemes to transfer and consolidate eligible pots likely to come into force from 2030.”
GOOD NEWS STORY
First UK payroll giving organisation joins UK B Corp community GOODPAYE, A UK payroll giving platform has officially become a certified B Corp, which marks a major milestone in its mission to use business as a force for good. It means GoodPAYE is now amongst businesses recognised for meeting the highest standards of social and environmental impact. Tony Charalambides, CEO of GoodPAYE, commented: “This is a defining moment for GoodPAYE and for the payroll giving sector as a whole. Businesses are increasingly looking for meaningful ways to align with social and environmental values, and payroll giving is one of the most effective ways to achieve that. Our B Corp certification reinforces payroll giving as a key element of responsible business, ensuring more companies and employees engage with it to create real impact.”
Diary dates
Last day of tax month 3
5 July 6 July
First day of tax month 4
Last day for submitting a real time information employer payment summary to apply to tax month 2 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
19 June
22 June (this is a weekend date)
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
Last day of tax month 4 First day of tax month 5
5 August 6 August
PROFESSI NAL in Payroll, Pensions and Reward
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June 2025 | Issue 111
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