Public sector employees to face reduced pay

Over six million UK workers could be subject to pay cuts from April after the new flat-rate state pension comes into effect.

The move, announced in the 2013 Budget, will boost the Treasury’s coffers by £5.5 billion per year and will be raised from public sector employers and employees by higher National Insurance (NI) payments.

Data suggests around five million workers in public sector and 1.5 million in the private sector will be affected. Those eligible will have to pay an extra 1.4 per cent points of NI on their earnings, equivalent to a deduction of up to £37 per month.

In an interview with The Times, former pensions minister Steve Webb, now director of policy at Royal London, said: ”I think the Chancellor had hoped that no one would notice this rather large tax increase smuggled out in advance as it was some years ago."

Employers will now pay higher NI, amounting to 3.4 per cent of their employees relevant earnings. The move means public sector employers will pay £3.33 billion and employees £1.37 billion more to the treasury in 2016-17 as a result of bringing in the pension earlier.

Event Diary

London Build is the UK's largest and leading construction show. Officially awarded the Best Trade Show in the UK. London Build is co-located with the London Build Fire & Security Expo.

EMEX returns to London’s ExCeL on 20 & 21 November 2024. Promising all visitors who come through the doors solutions, innovation and implementation, EMEX prides itself on giving practical answers to challenging issues and it is this ethos that sets it apart from other events in the energy management space.

Open Banking Expo UK & Europe introduces two co-located shows andexpands its exhibition hall for 2024!

Supplier Profiles

Building Forensics

Building Forensics ltd added IAQ following the increased public interest in Indoor Air Quality po

Geo Energy

At GeoEnergy Design, we're on a mission to disrupt the traditional way heating and cooling ha