Most employers will be familiar with the fact that the start of the new fiscal year usually brings with it an increase to many of the statutory rates and limits which apply to various employee benefits and entitlements.  2017 is no exception to this pattern but this year 6 April will also see the introduction of two new statutory schemes which will bring increased costs for some employers.  Here’s our round up of the changes which all employers need to be aware of.

 

New schemes	Cost of scheme	Comments
Apprenticeship Levy	0.5% of wage bill in excess of £3 million	Although the levy does represent an additional cost for larger employers, the scheme also enables all employers, whether they are large enough to have to pay the levy or not, to access government funding to train members of staff.
Immigration Skills Charge	Licensed sponsors to pay £1,000 per year to the government for each Tier 2 skilled migrant they bring in to work in the UK.  The charge is reduced to £364 per year for small employers and charities.	By introducing this charge the government is seeking to encourage employers to source their employees from the UK workforce.  There are a number of exemptions to this charge, so employers will need to check the requirements carefully.

 

Increases to existing rates/limits	2016/2017 rate	From 6 April 2017
National Minimum Wage (per hour)
National Living Wage (age 25+)	£7.20	£7.50
Standard Rate (age 21+)	£6.95	£7.05
Development Rate (age 18-20 inc)	£5.55	£5.60
Young Workers (age 16-17 inc)	£4.00	£4.05
Apprentice Rate	£3.40	£3.50
Statutory Maternity Pay/Statutory Paternity Pay/Statutory Adoption Pay/Shared Parental Leave Pay  (Prescribed rate, per week)	£139.58	£140.98
Statutory Sick Pay  (per week)	£88.45	£89.35
A week’s pay (used for purposes of calculating statutory redundancy entitlement and determining entitlement to some other benefits)	£479	£489
Maximum compensatory award in unfair dismissal claim – statutory rate (actual maximum award is lower of 52 week’s gross pay or statutory rate)	£78,962	£80,541

 

If you would like any further information about any of the above, please contact Matt Jenkin on matt.jenkin@moorcrofts.com or 01628 470011 or Sally Nesbitt on sally.nesbitt@moorcrofts.com or 01628 470014.