Autumn Budget 2021– what we know so far
A summary for Nanny Employers
Yesterday (Wednesday 27 October 2021), The Chancellor of the Exchequer presented his Autumn Budget and Spending Review to Parliament. We’ve summarised the key announcements that may affect nannies and employers below.
The Health and Social Care Levy
In September an extra tax was announced to help fund social care in England. This new tax named the Health and Social Care levy will come into effect from April 2023. However there will be an increase in National Insurance (+1.25%) for both the employer and the nanny in the interim as of April 2022.
Minimum wage rise
The National Living Wage for those aged over 23 will increase from £8.91 an hour to £9.50.
The National Minimum Wage for those aged 21-22 will also increase from £8.36 an hour to £9.18.
This means employers must ensure their nanny’s salary meets this new threshold as of the new tax year (start of April 2022).
Children and Education
Schools and colleges will receive around £2bn funding to support post-pandemic recovery. The chancellor confirmed an extra £4.7bn by 2024-25 which would aim to restore per pupil funding to 2010 levels.
£150m will be assigned to support and train those who work in early years, along with more funding for holiday and activity programmes. It has yet to be confirmed whether this will include training for nannies.
The Start for Life Offer
£300m will go towards “A Start for Life offer” for families.
Announcing the package, Mr Sunak confirmed around £80m will create another 75 family hubs across England. These support centres will be for families to access services in one place.
£100m will provide mental health support for expectant parents and £120m will be invested into additional family support programmes.
More information to follow…
The information provided is based upon what we know so far. We will keep you updated with any further details once these are confirmed by HMRC.
For more information please visit GOV.UK
