Hundreds of thousands of small businesses supported by the Employment Allowance
Over 850,000 employers are benefitting from the Employment Allowance across the UK.
The Employment Allowance is a reduction in National Insurance Contributions (NICs) that an employer pays on their employees, and is worth up to £2000 for eligible businesses and charities.
Within the first six months of its launch over 850,000 employers across the UK had benefitted from the Employment Allowance. This number is expected to increase throughout the remainder of the tax year.
Use the Employment Allowance calculator to work out if your business could benefit.
Announced at Budget 2013, the allowance is simple to claim and easy to administer. Businesses simply confirm their eligibility for the allowance through their regular payroll processes.
The new data coincides with a recent survey by the FSB amongst small businesses about the allowance which found that many small businesses have used it to invest in staff. 18% have used it to increase wages, 17% to hire additional staff, 12% for training, and 8% for more staff hours for current staff.
Want see the Employment Allowance stats in your local area? Visit our map to see those and other information about your local economy.
18% of small businesses surveyed have used it to invest in their businesses through equipment, machinery, or premises.
Chancellor George Osborne said:
Today’s figures show that half way through its first year over 850,000 businesses across Britain have already benefited from a cashback on jobs.
Businesses across the country can claim a cut in their National Insurance bill, worth up to £2,000, thanks to the Employment Allowance – and if they haven’t already then I urge them to do so.
This tax cut is part of our long term economic plan to back businesses investing in jobs. That is how you deliver greater economic security for hardworking people.
John Allan, National Chairman of the Federation of Small Businesses (FSB) said:
We’re really pleased to see so many businesses already taking advantage of the Employment Allowance. We called on government to help small employers invest in staff, and now we see how this additional support has been spent.
Our members have used the Allowance by paying workers more, hiring new people and increasing training. It’s also good to see a quarter of those that used the allowance to hire new staff took on an apprentice. We will work with government to raise the profile of the Employment Allowance so all the firms eligible, claim it.
Latest News from
Anniversary of Edinburgh Reforms marks further progress08/12/2023 11:25:00
Economic Secretary to the Treasury Bim Afolami is today announcing further changes to financial services as he marks the anniversary of the Edinburgh Reforms.
Prize opens for AI energy, environment, and infrastructure innovations07/12/2023 15:29:00
Entries now open for the Manchester Prize, with a focus on AI innovations across energy, the environment and infrastructure.
UK generates billions in climate finance and first CRDC in Africa04/12/2023 13:14:00
Over £480 million as part of £1.6 billion of climate aid announced by the Prime Minister to help developing countries access climate finance and mobilise private investment.
Boost for UK AI as Microsoft unveils £2.5 billion investment30/11/2023 17:05:00
The Chancellor has welcomed Microsoft's £2.5 billion investment over the next 3 years to expand its next generation AI datacentre infrastructure.
Councils pilot net zero projects with £19 million government backing30/11/2023 14:22:00
Local Net Zero Accelerator pilots will help combined authorities deliver green initiatives such as retrofitting homes and installing solar panels.
Autumn Finance Bill published to cut tax and back business29/11/2023 12:20:00
The Autumn Finance Bill 2023 has been published to enshrine a raft of landmark tax changes into law.
Technology Working Group publishes report on fund tokenisation24/11/2023 13:15:00
The City Minister’s forum for examining the impact of technology on the UK’s investment management sector publishes its first report.
Nissan triples investment in electric vehicle production in the UK24/11/2023 10:29:00
Nissan is delivering up to £2 billion of new investment to produce two new electric vehicle models in Sunderland.