Policy background
The Act is intended to deliver part of the Government’s long-term plan to repair the public finances and increase investment in public services and the economy in order to unlock growth. To achieve this, the government is asking employers to contribute more. This means, from April 2025, the rate of Employer NICs will increase to 15%, and the per-employee threshold at which employers become liable to pay NICs on employees’ earnings will be reduced to £5,000.
	The government will protect many of the smallest businesses by increasing the Employment Allowance to £10,500. More than half of employers will see no change overall from these measures in the next tax year. Eligibility for the Employment Allowance will also be expanded to allow more businesses to claim, with the removal of the threshold of £100,000 of employer NICs bills in the previous tax year.