Budget 2010 - Key issues for HR
07 April 2010
- 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.
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