“Which of the measures announced at Spending Review will impact your payroll department most?”
The most popular response was that the increase to the National Living Wage (NLW) and National Minimum Wage (NMW) rates would impact payroll departments most substantially, with 49% of respondents confirming that this was the case. The new rates will be implemented from 1 April 2021, and are as follows:
National Living Wage
£8.91
21-22 Year Old Rate
£8.36
18-20 Year Old Rate
£6.56
16-17 Year Old Rate
£4.62
Apprentice Rate
£4.30
Accommodation Offset
£8.36
This was followed by the increase to the income tax threshold from 6 April 2021, as the figure is due to rise by 0.5%, in line with the September Consumer Prices Index (CPI) measure of inflation. 23% of those who answered selected this option. The news that the National Insurance (NI) limits and thresholds are set to increase will have the biggest impact on payroll departments for 18% of respondents. Only 10% of answers to the Quick Poll indicated that the news about public sector pay would have the biggest effect on payroll departments. This could potentially be because this only has a direct impact on public sector organisations. The Chancellor confirmed that a pay rise would be awarded to over one million NHS workers. Additionally, the lowest paid individuals, who earn less than the median wage of £240,000 will receive a pay rise of a minimum of £250. More broadly, however, the rest of the public sector will see a freeze on pay rises in tax year 2021-22.
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New CIPP Quick Poll: Employer offerings at Christmas 16 December 2020
2020 has been a year that has undoubtedly been unlike any year anybody has previously experienced. Almost every part of life has been affected, and the way in which people work will also have been impacted. In light of this, the CIPP’s Policy team want to assess what employers are doing, if anything, for their staff this Christmas. Of particular pertinence is the fact that businesses won’t be able to host Christmas parties in the same fashion as they ordinarily do, in a face-to-face capacity, and they will have to be held virtually to help curb the spread of coronavirus. In order to establish if businesses are offering their staff anything over this festive period, the team has posted a new Quick Poll to the CIPP’s News Online page. We recognise that times are exceptionally busy at the moment, so we would like to thank anybody who takes the time to respond to the Quick Poll in advance. Answering should take no more than a minute to do, and this is your opportunity to feed into research on the behaviours of organisations at Christmas time.
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The majority of employers did not offer employees any additional perks over the festive period
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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