The most highly publicised change is the introduction of the the National Living Wage that will affect everyone over 25 years of age. From 1st 2016 April the new top rate for the minimum wage for this group will be £7.20 an hour. At the same time the penalty for any employer found not to be paying the minimum wage will double and this will include not paying the new living wage.
The other much discussed change is the introduction of the new single tier state pension replacing the basic state pension and the additional state pension. Effective from 6th April 2016 this will affect new pensioners and people in work who have been members of “contracted out” work place Pension schemes.
Those work place Pension schemes that have previously been “contracted out” and received a rebate on National Insurance contributions will no longer be able to do so and consequently National Insurance costs could increase for both the employer and employees who are members of the scheme.