Whatever your views on the General Election outcome, there is a clear majority for the Conservative Government. So what does this mean for UK employers and employees alike?
The Conservative government announced their intention to increase the threshold for paying national insurance contributions (NICs) from £8,632 to £9,500. This rise will take place in April 2020. It would also work towards a further increase to £12,500 which would align it with the income tax threshold.
The plans to increase the NICs threshold would benefit “almost all” employees and will lift thousands of part time employees out of all forms of direct taxation.
National Skills Fund
The General Election manifesto also announced that a new £3bn “National Skills Fund” would be created. This will ensure that employers can find and hire the workers they need. The fund would provide matching funding for individuals and SMEs for high-quality education and training, but an undisclosed proportion of the fund would be reserved for “further strategic investment in skills”.
“The National Skills Fund will help to transform the lives of people who have not got onto the work ladder and lack qualifications, as well as people who are keen to return to work from, say, raising a family, or switch from one career to another. It will not only make this country more prosperous, but fairer,”Conservative General Election manifesto
The manifesto says a Conservative government would “make the UK the best place in the world to work” by creating a single enforcement body to crack down employment law breaches. Further details will come in due course.
Further flexible working rights
The Conservatives have also pledged greater flexibility in employment; ensuring workers can request a more flexible contract; consulting on introducing flexible working by default; strengthening redundancy protections for women who return from maternity leave; allowing parents to take extended leave for neonatal care; and introducing the right to one week of leave for unpaid carers.
Other General Election Manifesto pledges
Other promises include boosting Public Sector employment and salaries, an Australian style points based immigration system and improvements to the Apprenticeship Levy.
Time will tell how many of these General election promises become reality but it’s good to be on the front foot.
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Based in South Manchester, Cornerstone Resources are experienced HR professionals who can help you navigate employment issues. Visit our website by clicking here for more information on our services. Alternatively call Rob on 07494 161169 or Nicci on 07908 875146 for a no obligation chat.