Recent government proposals April 2024

Government consultations, reviews and policy papers you need to be aware of. 

• In the Spring 2023 budget, the government announced its intention to improve and simplify the current Save As You Earn (SAYE ) and Share Incentive Plan (SIP) schemes. Consultations have now closed and changes were implemented to come into force on 6 April 2024. The changes include an increase to the maximum amount that can be deducted from an employee’s salary annually for SIP partnership shares to £1,800, and increase the maximum annual award of SIP free shares to £3,600. Schedule 3 to ITEPA will be amended by Treasury Order. This will increase the maximum amount that an employee can contribute to SAYE savings arrangement to £500 per month.

• On 10 May 2023, the UK government published its policy paper, Smarter Regulation to Grow the Economy. This is an ambitious and wide-ranging look at regulation across business in the post-Brexit landscape. From an employment perspective, the review will look at simplifying TUPE, limiting the scope of non-compete (restrictive covenant) clauses in employment contracts, and reforming the Working Time Regulations.

• In a market still beset by labour shortages, the government has been looking in several directions at ways to boost the number of people in work. With a budget of £22m and a network of ’50 PLUS Champions’ they have succeeded in increasing the number of people over the age of 50 in work by 210,000 in the past year.

• In addition to the above, the government are also seeking to provide opportunities for anyone up to the age of 21 by fully funding apprenticeships in small businesses from 1 April 2024. Furthermore, they are also allowing the apprenticeship levy to be transferred from larger businesses to support others.

• A review has also launched into the employment of neurodiverse people with a brief recommendation for ways in which the government can help employers to employ and retain people with autism and other neurodiverse conditions.