Getting more people into work with the right skills


Getting more people into work with the right skills
3.17 Most of the UK’s growth in the decade after 2008 came from an increase in hours
worked, with unemployment falling, participation rising and significant net inflows
from migration.6
3.18 However, since the pandemic, a significant proportion of over-50s have left the labour
There are now more vacancies (up 54% on pre-pandemic levels) than unemployed
for the first time and businesses across many sectors are struggling to fill jobs.9
Growth Plan announces measures to get more people back into work which, together with the
agenda to boost productivity, will drive higher employment, wages and economic growth.
3.19 Allowing working families to keep more of what they earn and making work pay is a
key priority to support growth. The government has already increased the National Insurance
contributions (NICs) Primary Threshold and Lower Profits Limit (from July 2022 onwards), to
align the point at which people start to pay NICs with income tax, at £12,570. This took more
than two million people out of paying NICs.
3.20 The government is now going further by reducing NICs rates by 1.25 percentage points
from November and cancelling the Health and Social Care Levy coming in from April 2023.
This will save 28 million taxpayers an average of £330 a year. This measure will also make
it cheaper for businesses to employ more staff being worth an average of £9,600 for over
900,000 businesses.
3.21 The government will bring forward the 1 percentage point cut to the basic rate of income
tax to April 2023, 12 months earlier than planned.

 This is a tax cut of over £5 billion a year that
allows workers, savers and pensioners to keep more of their income, with an average gain of
£170 in 2023-2024. This will apply to the basic rate of non-savings, non-dividend income for
taxpayers in England, Wales and Northern Ireland; the savings basic rate which applies to savings
income for taxpayers across the UK; and the default basic rate which applies to non-savings and
non-dividend income of any taxpayer that is not subject to either the main rates or the Scottish
rates of income tax.
3.22 As part of the government’s commitment to lower taxes and simplify the system – and
to improve the attractiveness of the UK as a place to work relative to other countries – the
additional rate of income tax will also be removed from April 2023. This will apply to the
additional rate of non-savings, non-dividend income for taxpayers in England, Wales and
Northern Ireland. The additional rate for savings, dividends and the default additional rate will
also be removed from April 2023, and this change will apply UK-wide. This will improve the
competitiveness of the UK tax system, encourage entrepreneurship and support growth. Where
rates are devolved in Scotland, the Scottish Government will receive funding through the agreed
fiscal framework to allocate as they see fit.
3.23 In addition, the government will reverse the 1.25 percentage point increase in dividend
tax rates from April 2023. This will benefit 2.6 million dividend taxpayers with an average saving
of £345 in 2023-24 and additional rate taxpayers will further benefit from the abolition of the
additional rate of dividend tax. This will support entrepreneurs and investors across the UK to
drive economic growth.
6 Output per hour worked, UK, Office for National Statistics, July 2022
7 Labour Market Overview, UK: September 2022, Office for National Statistics, September 2022
8 Labour Market Overview, UK: September 2022, Office for National Statistics, 

September 2022
9 Business insights and impact on the UK economy, Office for National Statistics, September 2022.
20 The Growth Plan 2022
3.24 The Growth Plan announces reforms to the Universal Credit (UC) conditionality to
support claimants on UC to secure more or better paid work. The government will raise the
Administrative Earnings Threshold to bring more claimants who are in work and on low
earnings into a more intensive conditionality regime and provide more work coach support. The
government will also strengthen the sanctions regime to set clear work expectations of claimants
and provide more support to those over 50. These changes will give claimants the best possible
chance to be financially independent of UC.
3.25 Older workers form a vital part of the UK labour force, bringing a wealth of skills and
experience that can help businesses succeed. The government will continue to consider further
options to encourage people to stay in the labour market for longer, to support growth and
people seeking to build up savings for their retirement.

26 The UK has some of the highest quality childcare provision in the world, but it is also one
of the biggest costs facing working families today and a barrier for people remaining in the
labour market. The government will bring forward reforms to improve access to affordable,
flexible childcare.
3.27 Migration, in particular skilled and high-skilled migration, plays an important role in
economic growth, productivity, and innovation. The government has reshaped immigration
policy to shift the balance of people coming to the UK to those with skills the UK needs.
The government is committed to ensuring the immigration system works for business and
encourages highly skilled people and high growth businesses to choose to locate and invest
in the UK. This has included the introduction of Global Talent, High Potential Individual, Scaleup Worker and Global Business Mobility visa routes. The government will set out a plan in the
coming weeks to ensure the immigration system supports growth whilst maintaining control.
3.28 The government will also introduce legislation that will ensure Minimum Service Levels
can be put in place for transport services so that industrial action doesn’t make it impossible to
get to and from work, and to make it easier to settle industrial disputes by ensuring meaningful
employer pay offers are put to employees.

legal consultations and travel advisor in the States and within UK

Media solutions , Media company , online classes , learn german , learn english , perfect language , blood cord , rehab , rehabiliations , rehabilitation center , magazitta

Post a Comment

Previous Post Next Post

Contact Form