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Businesses Urged to Prepare for Wage and Statutory Payment Increases in 2025

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As the new year begins, businesses are being advised to review their finances and plan for the changes set to take effect in April 2025. With statutory increases to the National Living Wage (NLW), National Minimum Wage (NMW), and other statutory payments, companies need to prepare in advance for the additional costs.

Wage Increases: National Living and Minimum Wage

From 1 April 2025, both the National Living Wage (NLW) and National Minimum Wage (NMW) will see significant increases. The NLW for workers aged 21 and over will rise from £11.44 to £12.21 per hour. The NMW for those aged 18-20 will increase by 16.3%, from £8.60 to £10.00 an hour, the largest rise ever for this age group. Meanwhile, the NMW for workers aged 16-17 and apprentices will increase from £6.40 to £7.55.

This 16.3% rise for the 18-20 age group is intended to narrow the gap between the two wage categories, with the possibility of extending the NLW to this group in the future. The Low Pay Commission is expected to consult on how to achieve this change in 2025.

Employers are advised to audit their workforce and ensure that payroll systems are updated to reflect these new rates, particularly for employees who will benefit from the increases.

Statutory Payment Increases

Alongside wage changes, statutory payments will also rise starting 6 April 2025. The weekly rate for statutory maternity, adoption, paternity, shared parental, and parental bereavement leave pay will increase from £184.03 to £187.18. If an employee’s average weekly earnings are lower than the statutory rate, they will receive 90% of their average earnings.

Statutory sick pay (SSP) will rise from £116.75 to £118.75 per week. However, a more substantial change could be on the horizon. A consultation on strengthening SSP, which ended in December 2024, suggested that eligibility could be extended to low-paid workers and that the three-day waiting period for SSP might be eliminated.

National Insurance Contributions

In another change, employers’ National Insurance contributions (NICs) will rise from 13.8% to 15% from 6 April 2025. Additionally, the threshold for NICs will be lowered, meaning employers will start paying contributions on employee earnings from £5,000, instead of the current £9,100.

The increase in employers’ NICs, along with higher wage rates, has raised concerns about potential job losses or slower recruitment. There are also worries that businesses may pass on these increased costs to consumers, contributing to higher inflation. According to the Deputy Governor of the Bank of England, this rise in NICs could slow long-term wage growth.

Strategies for Businesses

To manage these changes effectively, employers are encouraged to review their budgets and explore ways to improve productivity. Proactive measures, such as identifying efficiencies and maintaining open communication with employees about upcoming changes, will be crucial. Businesses may also benefit from consulting legal or financial experts to ensure compliance with the new regulations and navigate the financial challenges ahead.

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Amazon MGM Takes Creative Reins of James Bond Franchise Amid Casting Buzz

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In a landmark shift for the James Bond franchise, Amazon MGM has partnered with long-time producers Michael G. Wilson and Barbara Broccoli to oversee the future of 007. While all three entities retain co-ownership of the Bond intellectual property, Amazon MGM will now lead creative decisions, marking a significant departure from its previously limited role.

The move follows Amazon’s $8.5 billion acquisition of MGM in 2021, which granted it partial ownership but little say in the franchise’s artistic direction. With Daniel Craig’s departure after 2021’s No Time to Die, speculation about the next James Bond has intensified. Jeff Bezos, Amazon’s founder and executive chairman, fueled the debate by asking his followers on social media platform X, “Who’d you pick as the next Bond?” The overwhelming response highlighted British actor Henry Cavill as a fan favorite. Known for roles in Superman, The Witcher, and Mission: Impossible – Fallout, Cavill previously auditioned for the role in 2006’s Casino Royale but lost to Daniel Craig. Director Martin Campbell praised Cavill’s audition but deemed him too young at the time. Now in his early forties, Cavill’s age could be a factor if long-term commitments are considered.

Daniel Craig acknowledged Wilson and Broccoli’s contributions, telling Variety, “My respect, admiration, and love for Barbara and Michael remain constant and undiminished.” With Wilson stepping back and Broccoli expected to reduce her involvement, Amazon MGM gains greater creative control, raising questions about the franchise’s future direction.

Fan speculation continues to swirl around Cavill, alongside other contenders like Taron Egerton, Tom Hardy, and Idris Elba. While Amazon MGM has yet to announce a timeline or reveal casting decisions, industry watchers anticipate a new era that may extend beyond traditional films, potentially including spin-offs, series, and streaming exclusives. As the studio reshapes Bond’s future, audiences worldwide eagerly await the next chapter in the iconic spy saga.

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Global Hiring Slump Marks Longest Downturn in Decades, Says Hays CEO

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The global job market is experiencing its longest downturn in over 20 years, according to Dirk Hahn, CEO of Hays, Britain’s largest listed recruitment firm. Hahn attributes the slump to ongoing macroeconomic uncertainty, which is deterring both employers and job seekers from making moves.

Hays, which employs nearly 7,000 consultants worldwide, reported weaker demand for temporary workers in early 2025, while demand for permanent roles—particularly in Europe—remains sluggish following a pre-Christmas dip. Countries such as France, the UK, Ireland, and Germany, Hays’s largest market, are feeling the pressure most acutely.

In the six months leading up to December, Hays reported a 15% drop in group net fees, falling to £496 million from £583.3 million the previous year. Pre-tax profits fell sharply by 67% to £9.1 million, compared to £27.6 million during the same period the prior year. Hays’s share price, already down 25% over the past year, dipped a further 1.8% on Thursday, closing at 71¾p and placing the company’s market value just below £1.2 billion. Despite declining profits, the company will maintain its interim dividend at 0.95p per share.

While the broader UK labor market has shown resilience with limited mass layoffs, businesses remain cautious about expanding their workforce. “Most companies have enough work to retain their current staff, but they’re not looking to increase headcount,” said James Hilton, Hays’s chief financial officer. “Many employees who received pay increases in recent years are not seeking new roles, creating a stalemate. However, over time, people will seek promotions or fresh challenges.”

Recruiters had anticipated a market recovery earlier this year, but Hahn now warns that the rebound may not materialize until 2026. In the meantime, Hays is focusing on its technology recruitment division—its most profitable segment—as it navigates the prolonged global hiring slowdown.

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UK Government Reports Lower-Than-Expected Budget Surplus in January

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The UK government reported a budget surplus of £15.4 billion in January, falling short of economists’ forecasts of £21 billion and the £19 billion predicted by the Office for Budget Responsibility (OBR). Despite January typically seeing a boost from self-assessment tax payments, the lower-than-expected figure has increased total borrowing for the financial year to £118.2 billion—over £11 billion more than the previous year.

The government’s debt-to-GDP ratio now stands at 95.3 per cent, a level last observed in the 1960s. With the OBR set to release updated forecasts on March 26, there are concerns that the government may struggle to meet its goal of reducing the debt ratio by 2029. This could lead to potential spending cuts or tax hikes in the autumn budget.

Reduced debt-servicing costs helped boost January’s surplus, dropping from £9 billion in December to £6.5 billion. However, this was partially offset by a £6 billion one-off expense related to the government’s repurchase of military housing from private firm Annington.

Darren Jones, chief secretary to the Treasury, emphasized the government’s commitment to “economic stability and meeting our non-negotiable fiscal rules.” He also noted that a comprehensive spending review—the first of its kind in 17 years—is underway to ensure that public funds are used efficiently and aligned with national priorities.

 

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