New CIPP Quick Poll: Spending review announcements

01 December 2020

Chancellor, Rishi Sunak delivered the Spending Review on 25 November 2020, and within the announcement, information was provided about various updates that will affect the work of payroll professionals next tax year.

The National Living Wage (NLW) and National Minimum Wage (NMW) rates for use from 1 April 2021 were confirmed. There was also an update in relation to the pay for those working within the public sector – so a pay rise will be awarded to more than one million NHS workers, but there will be a freeze on pay rises for the rest of the public sector for tax year 2021-22. There will, however, be a guaranteed pay rise of at least £250 for the lowest paid individuals working in the public sector, which will impact approximately 2.1 million workers. The other key announcement of interest to payroll professionals related to the fact that the Income Tax Personal Allowance and the Higher Rate Threshold will increase in line with the Consumer Price Index (CPI) figure for September 2020. Additionally, this figure will be used as the basis for establishing what the National Insurance (NI) limits and thresholds, and the rates of class 2 & 3 NI contributions will be for tax year 2021-22.

The CIPP’s Policy and research team would like to hear from you, in relation to which update will impact your payroll department most substantially, so we have posted a Quick Poll on the CIPP’s News Online page for you to answer.

We appreciate that payroll professionals are extremely busy, especially at the given time due to all of the measures introduced by the government to help businesses and employees through the outbreak of coronavirus, so we really appreciate the time taken to complete the Quick Poll. It should take less than a minute to make your selection.


Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information. Download the CIPP's Payroll: Need to know - your guide to payroll legislation and reporting for the most up to date data.