At its annual conference The Confederation of British Industry (CBI) called for a cut to employee National Insurance (NI) contributions and an increase in free childcare, in a bid to boost living standards.
Their report, A better off Britain, makes the case for a reduction in employee NI contributions by raising the payment threshold from £7,956 to £10,500 a year. The suggestion is that the changes are staggered through to 2020/21.
The proposals suggest that single workers would be better off by £181 each year and couples would save £363.
Better routes into high-skilled work
The CBI urged the government to offer immediate help for low income families, and to increase focus on raising productivity, boosting pay and developing better routes into higher-skilled work.
CBI director-general John Cridland said: “The UK needs to face up to some real long-term challenges. Changing skills needs, greater global competition and low social mobility mean for many the pathway to a better life is tough and far from clear.”
It was also proposed that maternity pay should be extended from 39 to 52 weeks and provisions should be made to offer 15 hours of free healthcare to all children under two years old.
Addressing savings issues
The report addressed the issue of employees who are not thinking about their pension, raising demand for Individual Savings Accounts (ISAs) by allowing savings in both individual and corporate accounts.
Cridland went on to say: “Firms can do more to help staff save and giving people a stake in the business can have real benefits, from lower staff turnover and increased employee engagement.”
Hiring payroll experts
When looking for a payroll consultant or payroll manager, it is important your candidates are knowledgeable about the latest National Insurance legislation.
Excellent candidates should have the necessary skill sets to ensure the HR department is organised, functional and promotes growth within your business.
For over 20 years we have helped businesses find the right candidates for their vacancies. For more information, contact Portfolio Payroll on 020 7247 9455.
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