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UK: Emergency budget measures
The new UK coalition Government revealed its emergency budget yesterday with a number of measures focussed on employment.
Every new business started up outside of London, the East and South-East will receive a National Insurance holiday on the first ten employees they recruit (a saving of 12.5% in costs for each new member of staff).
All public sector staff earning over £21 000 a year will have their pay frozen for two years, whilst those below that figure will receive an annual pay rise of £250.
Long term jobseekers – those who have claimed Jobseekers allowance for over 12 months – will face a 10% cut in housing benefit from April 2013. In addition, single parents will have to look for work once their youngest child is in school.
The government will continue to pursue the aim of raising the age at which the state pension can be claimed to 66 and engage in consultations over removing the statutory retirement age of 65.