0:00
why will firms hiring low-wage workers
0:02
see their tax bills go up in 2025 the
0:05
cost of employing low-wage workers is
0:06
set to hit a record high in 2025
0:09
according to new analysis businesses
0:11
with staff on the minimum wage will have
0:13
to Shell out more in Revenue to the
0:15
treasury in the wake of changes brought
0:17
in by the government a think tank has
0:18
found but why is this happening and what
0:21
does it mean for firms according to the
0:22
Center for policy studies the rise in
0:24
employers National Insurance
0:26
contributions announced in Rachel ree's
0:28
first budget in October has led to a 60%
0:31
tax increase for firms employing the
0:33
lowest paid this year a firm employing a
0:36
full-time worker on the minimum wage
0:40
2538 in nic's versus £
0:44
1,617 in 20124 in total alongside the
0:48
minimum wage increase it will cost
0:52
2367 more to employ one full-time worker
0:55
on the minimum wage compared to 2024
0:58
their report titled punching down how
1:00
Labor's Jobs Tax hits the lowest paid
1:02
the most warns that 2025 will be the
1:05
most expensive on record for firms
1:06
employing low paid staff while the
1:08
so-called tax wedge the combined amount
1:11
of tax paid by employees and employers
1:13
for those on minimum wage will equate to
1:16
21.3% of salaries in 2025 what's the
1:19
reaction been to all this well CPS
1:22
director Robert cville warned the
1:24
government's changes make it
1:25
disproportionately more expensive to
1:27
employ those at the lower end of the
1:29
wage scale he said labor claims to
1:31
understand the importance of growth and
1:33
to have made it a priority but it was
1:35
clear from the moment of the budget that
1:36
taxing jobs and work would damage the
1:39
economy while tax and fiscal researcher
1:42
Daniel Herring warned this Rising costs
1:44
may make it harder for businesses to
1:46
create and sustain jobs which could
1:48
disproportionately affect the lowest
1:50
paid or those looking to move back into
1:52
work after being economically inactive
1:55
we asked the treasury for their response
1:56
and a spokesperson told us the
1:58
government delivered a one in a
2:00
parliament budget to wipe the Slate
2:02
clean and deliver the stability
2:04
businesses so desperately need they
2:06
cited the independent office for Budget
2:08
responsibility report which they said
2:10
confirmed that it delivers lower
2:11
unemployment and higher wages over the
2:13
coming years and that more than half of
2:16
employers will either see a cut or no
2:18
change in their National Insurance bills
2:20
and the spokesperson stressed ministers
2:22
are focused on delivering the
2:23
government's plan for change what do you
2:25
think the impact on businesses and
2:27
workers could be let us know in the
2:28
comments and follow TM for more on this
