Clarkslegal LLP - Solicitors in Reading and London

Legal Updates

Budget 2010 - Key issues for HR

07 April 2010 #Employment

Employment Law

  • Confirmation that the government is considering scrapping the default retirement age or raising it - a final decision is expected in the summer.
  • The national minimum wage will rise from the current £5.80 an hour in October by 2.2 per cent to £5.93 an hour.

Unemployment and jobs

  • The jobs guarantee for young people extended until March 2012. 
  • This entitles under 24-year-olds to training or a job if they have been unemployed for longer than 6 months.
  • Amount of time over-65s must work to receive working tax credits reduced to 16 hours.
  • A ‘green investment bank` announced to encourage investment in renewable energy which could create thousands of jobs.


  • No move to shelve the national insurance 1% rise in 2011 - affecting all those who earn £20,000 or more.
  • Confirmation of the 50% tax rate on earnings over £150,000 and proposals for restricting the higher rate tax relief on pension contributions.

Public Sector cuts, pay and pensions

  • 15,000 civil servants to be relocated outside London.
  • As part of £343m cuts to the Ministry of Justice budget, the Courts Service and the Employment Tribunals Service will be merged.
  • Confirmation that public sector pay settlements would be held at a maximum of 1% for the two years from 2011 and no new announcements on public sector pension reform.
Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

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Employment team
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