(9 years, 6 months ago)
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The Financial Secretary to the Treasury (Mr David Gauke)
Today I am announcing the latest figures for take up of the Employment Allowance scheme that came into effect in April this year.
The Employment Allowance allows businesses and charities across the UK to claim an allowance of up to £2,000 every year to reduce their National Insurance contributions (NICs). The allowance is part of the Government’s commitment to support small businesses: by reducing the cost of employment, the Employment Allowance will help small businesses seeking to grow by hiring their first employee or expanding their existing workforce.
Today I can confirm that take-up of the Employment Allowance has been very positive. The most recent HMRC figures to 5 October 2014 show that around 856,000 employers have benefited from the allowance. That represents around 68 % take up across the UK as a whole after only 6 months of the operation of the allowance.
In total around £900 million of employer NICs relief has been claimed by businesses through the allowance.
These latest figures demonstrate our commitment to increase employment by reducing burdens for small businesses and show that businesses have recognised this and are responding to Government policies in this area. I will update the House in due course about the Employment Allowance when more information becomes available.
The latest figures are available on HMRC’s website and, in line with the commitments made during the passage of the National Insurance Act 2014, a copy of this statement and the latest figures have been placed in the Libraries of both Houses.
I know that all Members have an interest in promoting business opportunities in their constituencies, so I would urge Members to help make businesses aware of the benefit of the Allowance.