Question to the Department for Education:

To ask the Secretary of State for Education, whether her Department made an assessment of the potential impact of changes made to (a) National Insurance and (b) the National Living Wage at the Autumn Budget 2024 on the number of apprenticeships offered by high street businesses.

Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)

To repair public finances and help raise the revenue required to increase funding for public services, the government has taken the difficult decision to increase employer National Insurance.

The government recognises the need to protect the smallest employers, which is why the Employment Allowance has been more than doubled to £10,500. This means more than half of businesses with National Insurance contributions (NICs) liabilities either gain or see no change next year. Employers will continue to be able to claim employer NICs reliefs, including the relief for employing apprentices under 25, where eligible.

From April 2025, the National Living Wage will increase by 6.7% from £11.44 to £12.21 and the Apprentice Minimum Wage will increase by 18% from £6.40 to £7.55. The government has accepted the findings of the independent Low Pay Commission in full and this increase to the Apprentice Minimum Wage will boost the hourly wage for thousands of young apprentices across a range of sectors and those in their first year of an apprenticeship.

The government remains committed to ensuring that apprentice wages support the attraction of talented individuals into apprenticeships and remain fair for employers. High quality apprenticeships are key to unlocking a more skilled and productive economy.

The department also continues to pay employers and training providers £1,000 when they take on apprentices under 19, or 19 to 24-year-olds who have an education, health and care plan, or have been in care.

Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, whether their Department offers its staff shared parental leave from their first working day.

Answered by Daniel Zeichner - Minister of State (Department for Environment, Food and Rural Affairs)

No. The Civil Service Management Code sets out that, ‘Departments and agencies may only grant shared parental leave in accordance with the statutory requirements governing eligibility for this category of leave.’ However, some staff could qualify for statutory shared parental leave on their first day of service with a particular department because they already have service with another department.

As with any changes to employment legislation, internal policies and processes will be updated as appropriate in preparation for when the Employment Rights Bill 2024 comes into effect.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential implications for her policies of trends in the level of disguised employment in the (a) hairdressing and (b) beauty industries; and what steps she plans to take with Cabinet colleagues to help tackle disguised employment.

Answered by James Murray - Exchequer Secretary (HM Treasury)

HMRC is committed to ensuring that the tax system operates fairly and efficiently and creates a level playing field for compliant businesses. Most businesses pay what they owe but a minority fail to register with HMRC or only declare a portion of their earnings.

HMRC is committed to tackling false self-employment and will investigate evidence suggesting businesses have misclassified individuals for tax purposes. In these cases, HMRC will take steps to ensure they pay the right Income Tax and National Insurance contributions.

HMRC recognises that some customers can find it hard to understand their tax obligations. HMRC is developing and testing new educational material specific to the hair and beauty sector to explain better the rent-a-chair model making it easy for customers to get things right and reduce mistakes. HMRC is planning for this to be ready for publication on GOV.UK in the spring. HMRC is continuing to work on updates to the Taxable Persons manual and these will be published in due course.

Question to the Home Office:

To ask the Secretary of State for the Home Department, what estimate she has made of the number and proportion of barber shops that are linked to money laundering.

Answered by Dan Jarvis - Minister of State (Home Office)

According to a report by the Local Data Company and Green Street, the average number of barber shops per 10,000 people has more than doubled in the last 10 years, from 1.4 per 10,000 people in 2013, to 3.1 per 10,000 in 2023. The Government recognises that cash intensive businesses such as barber shops can be exploited by criminals who seek to legitimise their criminal cash enabling them to profit from their illegal activities.

That is why addressing cash-based money laundering is one of the strategic priorities of the National Economic Crime Centre which sits within the National Crime Agency, and who are currently working with partners to facilitate an increased operational response to this threat.

In parallel, the National Police Chiefs’ Council economic crime co-ordinators are engaged in the development of Clear Hold Build strategies to help police forces tackle serious and organised crime. Clear Hold Build aims to reclaim and rebuild neighbourhoods affected by organised crime and increase public confidence in the police and partner agencies. This includes tackling financial crime on the high street.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what information his Department holds on the number and proportion of (a) hairdressing and (b) beauty businesses that are considering closing in the next 12 months.

Answered by Gareth Thomas - Parliamentary Under Secretary of State (Department for Business and Trade)

There are no official statistics on the number of hair and beauty businesses that are considering closing down in the next 12 months. We regularly engage with the sector and review industry surveys to understand sector confidence.

The Government are protecting the smallest businesses by increasing the Employment Allowance to £10,500, meaning that 865,000 employers will pay no National Insurance Contributions at all. We are also creating a fairer business rates system and to support hair and beauty businesses through this transition, we are extending business rates relief for Retail, Hospitality and Leisure sectors for one year at 40% up to a cash cap of £110,000.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made on the potential impact of the Autumn Budget 2024 on the levels of employment of women in the (a) hairdressing and (b) beauty industries.

Answered by James Murray - Exchequer Secretary (HM Treasury)

The Government has taken a number of difficult but necessary decisions on tax, welfare, and spending to fix the public finances and fund public services.

The Government has set out the impacts of the policy changes from Autumn Budget 2024 in the usual way.

The Office for Budget Responsibility’s October 2024 forecast, which considers the impact of all the Budget measures, expects the employment level to increase from 33.1 million in 2024 to 34.3 million in 2029.

Found: Watch the meeting Members present: Dame Meg Hillier (Chair); Dame Harriett Baldwin; Rachel Blake; Chris

Found: Current membership Dame Meg Hillier (Labour; Hackney South and Shoreditch) (Chair) Dame Harriett Baldwin

Found: Not called_259 Dame Harriett Baldwin .

Found: _172 Rebecca Paul Rebecca Smith Dame Harriett Baldwin David Mundell .

Found: Not called_NC83 Andrew Griffith Greg Smith Dame Harriett Baldwin .