The Chartered Institute of Payroll Professionals
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The largest downward contribution to the monthly change in CPI annual rates came from housing and household services, where the annual rate for CPI was the lowest since records began in January 1950. The second-largest downward contribution came from food and non-alcoholic beverages where the annual rate was the lowest since June 2022.
Keep an eye out for our update on the upcoming Bank of England bank rates, set to be released 15 December 2023.
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Flexible working – a day one right – confirmed to commence 6 April 2024 Published: 12 December 2023 Emailed: 13 December 2023
A statutory instrument has been laid down to ensure that the amendments to the flexible working regulations come into effect from 6 April 2024.
This means that any request made on or after 6 April 2024 will be subject to the new rule and can be made from day one of employment.
We are still waiting for additional information about the additional measures being brought forward to increase workers’ rights regarding flexible working requests.
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Bank rate maintained at 5.25% Published: 14 December 2023 Emailed: 20 December 2023
The Bank of England’s Monetary Policy Committee (MPC) has announced that, for the third time in a row, the bank rate will be held at 5.25%.
This will mean no changes are required to HM Revenue and Customs’ (HMRC’s) late payment interest fees.
The MPC voted six to three in favour of keeping the bank rate the same, with the three members instead preferring an increase of 0.25 percentage points up to a total of 5.5%. While it is promising to not see further rises, we are not out of the woods of high interest rates just yet.
The CPI figures are due to be released on 20 December 2023, could this impact the next bank rate decision, which is due on 1 February 2024?
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CPI for November 2023 slows to 3.9% Published: 21 December 2023 Emailed: 3 January 2024
The Office for National Statistics (ONS) has released the CPI inflation figures for the year up to November 2024. CPI fell by 07% percentage points to 3.9%.
Despite this reduction in inflation, the Bank of England, last week, did not see the economics of the country improving enough to budge the bank rate from 5.25%. In fact, those who voted against keeping the bank rate the same voted instead to increase it.
With the next bank rate announcement set for 1 February 2024, we have some time to wait for the next decision by the Bank of England’s Monetary Policy Committee (MPC).
Before then, we will get the next inflation announcement from ONS on 17 January 2024.
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