Yesterday (October 30th 2024), history was made when the Autumn Budget was announced by the Chancellor of the Exchequer. It was a historical moment because that Chancellor is Rachel Reeves – the first ever female Chancellor of the Exchequer.
It was also the first Budget statement by a Labour Government in 14 years. 2010 being the last time a Labour Government had delivered the announcement.
And in another headline-making moment, this Autumn 2024 Budget Statement also contained the biggest tax rises since 1993. Rises that the Chancellor stated will raise £40 billion to fund the NHS and other public services.
When we hear of tax rises, this is not always welcome news for families. But in this Budget Statement, Chancellor Rachel Reeves stated that she had taken steps to deliver a Budget that would give people more pounds in their pockets, along with improved living standards and better public services.
So, with all of that in mind, let’s take a look at some of the key takeaways from the Autumn Statement that might affect working people.
Key Takeaways From Chancellor, Rachel Reeves’ Autumn Budget Statement
How does this Budget affect parents, young people, carers, families, older people – all groups that are often working in part time jobs?
National Living Wage Increases
Lots of part time jobs out there tend to be entry level roles and jobs in sectors that traditionally pay minimum wage such as the hospitality, leisure and retail sectors.
If you are earning the National Living Wage, the good news is that this is set to increase.
- The National Living Wage for over 21s is set to increase from £11.44 to £12.21 from April 2025. For someone on a 37.5 hour working week, this equates to an annual salary of £23,870.60. If you are working part time flexible hours, you will be able to calculate your own wage increase.
- For 18-20 year olds, the hourly wage will increase from £8.60 to £10 with a view to heading towards a single National Living Wage for all adults. So, in the future, young people who fall into this age bracket may eventually be paid the same as those aged 21 and over.
- Apprentices will get the biggest increase. They will be entitled to a minimum wage of £7:55 per hour from April 2025. This is up from £6.40 per hour. Some employers already pay their Apprentices above the minimum wage, but if you are doing a part time Apprenticeship and your employer is paying the minimum wage, you will no doubt welcome this increase in your hourly rate.
Women make up 58% of those receiving the National Living Wage so these increases could be of benefit to them, in particular.
The rise in the National Living Wage is also an above inflation rise, so this should be a good boost for the lowest paid workers.
Government-Funded Childcare
The Chancellor pledged £1.8 billion to government funded childcare which she said would go towards creating 3,000 new school-based nurseries.
Thousands of primary schools will also have free breakfast clubs.
This could be a great help to people with young families and for parents who are looking to get back into the workplace but who couldn’t previously afford to because of childcare costs.
The costs of childcare prove to be a big barrier for many parents with young children who also want to get back into the workplace, so free breakfast clubs and school-based nurseries can only be a welcome announcement for parents.
Good News For Carers
Lots of the people who work part time are also full time carers. Many of you will be aware of recent news stories about carers who have accidentally earned too much money whilst also receiving their carer’s allowance; working a few extra hours here and there. Some carers have found themselves in hot water, being asked to pay back their allowance.
In the Budget statement, Chancellor, Rachel Reeves announced that carers can now earn over £10,000 per year before they lose their carer’s allowance. The weekly earnings limit is 16 hours if you are earning the National Living Wage.
This can be a useful guide for those of you who work part time flexible hours. And it should give you a bit more leeway in your ability to work some extra hours if you want to.
National Insurance For Employers
As a part time worker, you will be pleased that your National Insurance contributions have not been increased in the Autumn Budget.
However, unless you are working for a small company or you only work a few hours, this will not be the case for your employer. They will now need to pay more for you in National Insurance contributions.
Currently, businesses are paying National Insurance at a rate of 13.8% on salaries above £9,100.
From April 2026, this will change so that businesses will need to pay National Insurance for employees at a rate of 15% on salaries from £5,000.
Some businesses say this could potentially hurt wages and future recruitment because employers will already be paying more for the staff they have.
Critics have also said this could lead to employers choosing to employ part time or temporary staff over full time staff. For you as a part time worker, however, that could be a good thing.
Single Fare Bus Cap & Train Fares To Rise
Depending on where you live, this will be a disappointment for those of you who either rely on public transport for your commute to work – or to get around, generally. Or, of course, for those of you who choose to use public transport over private vehicles.
The Chancellor announced that the single fare bus cap will rise from £2 to £3 in 2025. If you are working part time and rely on the bus or train to get to work, this could eat into your wage. The new cap will run until the end of 2025.
However, for those of you who live in London and travel with Transport for London, your fares will remain at £1.75.
In Greater Manchester, your fares will remain at £2.
This is because London and Greater Manchester operate a different funding system.
If you are in Scotland, Wales or Northern Ireland, your public transport fees are specific to your country.
For rail travel in England, regulated train fares will rise by 4.6% and the cost of railcards will rise by £5.
If you travel by private vehicle, on the other hand, there will be no tax increase on the petrol you need.
For those of you who are juggling more than one part time job, or who need to do the school run and make it to work on time, your own transport might be a necessary tool. There will be relief for some that fuel prices are not going up.
Employment Rights
The Chancellor announced that women’s employment rights will be strengthened for pregnant women and for women returning to work.
There will also be provisions put in place to make it easier for parents to share childcare responsibilities and flexible working will be the default.
This should be good news for young families trying to negotiate parenthood whilst also holding down a job, whether part time or full time.
Low Income Families
There is no change in the two-child benefit cap. This means if you are a low income family, you will only be able to claim additional support for your first two children.
However, Universal Credit Deductions will be capped. The amount of benefits that can be taken each month of automatic debt repayments will reduce from 25% to 15%.
The Chancellor says this means 1.2 million of the poorest households will keep more of their benefits, lifting more children out of poverty.
Critics have argued that it would have been better to abolish the 5 week wait for the first payment of Universal Credit as it is this delay, without the money, that pushes people into poverty in the first place. Many people in receipt of Universal Credit are also in debt and critics say this is the issue that needs to be dealt with.
Local Housing Allowance Freeze
The freeze on Local Housing Allowance remains in place and this has been criticised by some at a time when rents for housing owned by private landlords are so high.
If you are in receipt of Universal Credit, you will need to make up the difference between your Local Housing Allowance and your actual rent.
Critics have pointed out that this leaves less money for food and other bills.
Smoking & Vaping & Drinking
If you smoke or vape on your work breaks, then you won’t be surprised that a tax increase has been announced on both.
The vape tax – at £2.20 per 10 mls of vaping fluid – won’t come into effect until October 2026. There will also be a rise of £2.20 per 100 cigarettes and duty on hand rolling tobacco will increase by 10%.
If you enjoy partaking in the odd pint down the pub after work, however, then the good news is that the tax on draught beer has been reduced by the equivalent of 1 penny in the pint.
Not a lot. You would probably need to enjoy a good few pints to spot much difference in the pounds in your pocket… But every little helps, as they say.
After The Budget Announcement
As with any Budget Statement, there are winners and there are losers. There are those who will praise the measures taken – and there are those who will point out the faults. For many, there will be the good and the not so good.
A Budget will never please the whole population, and as always, we will wait and see what effects the recent Budget will have on the economy and the population as a whole.
Whatever your particular situation, if you are looking for part time or temporary work, why not create an account with us or take a look at our current listings to see if there is anything out there to suit you.
