WIREDGOV

In the Autumn Budget presented on October 30th, 2024, Chancellor Rachel Reeves announced key National insurance changes, which will apply to all payments made to workers from April 6th, 2025.

The key changes which will take effect from April 6th are as:

• The rate of employers NICs will rise by 1.2 percentage points, moving from 13.8% to 15%.
• The threshold at which employers are required to pay national insurance contributions has been decreased from £9,100 down to £5000 per year.

In accordance with the call-off terms and conditions of the framework agreement, worker pay and statutory charges are included within the contract price. Whilst the responsibility to pay the NI in accordance with legislation lies with the Provider, the employer is liable for the cost of the NI (including any increases). Ultimately, this is a contractual matter to be agreed upon between the Contracting Authority and the Provider but this change does not permit Providers to increase their fees or recoup costs against the Contracting Authority and YPO. Under no circumstances may suppliers exceed their tendered fee but the total cost payable by the Contracting Authority will increase as a result.

At YPO, we are committed to keeping you informed about any changes that may impact workers provided through our Managing Recruitment and Resourcing framework (1140) and previous iterations of the framework (942, 569).

If you have any questions regarding this update, please do not hesitate to get in touch HRSolutions@ypo.co.uk.