Jeremy Hunt has announced the Autumn Statement, which includes two key changes that will impact domestic staff.

Here’s a breakdown of what you need to know:

Boost for domestic staff on the Living Wage

One feature of the Statement is the increase in the National Living Wage – from £10.42, the hourly rate is set to climb by 9.8%, reaching £11.44. This is the largest ever cash increase in the National Living Wage, and as a result, employees can expect to see a boost in their earnings.

Extra £10 a week for domestic staff  from January 2024

From the 6th January 2024, the main National Insurance rate for employees will see a 2% reduction, dropping from 12% to 10%. For those earning the average UK salary (£35,000), this allows an extra £450 of annual savings, equating to nearly £10 per week. This tax cut aims to ease the financial burden on workers, providing them with more disposable income. 

For self-employed individuals, there will be changes to two other areas of National Insurance specific to them, saving self-employed individuals about £350 a year.

For detailed insights into the National Insurance cut, click here.

Our rates & thresholds page will be updated with these changes in due course.