The Autumn Budget, delivered by Chancellor John Healey on October 28, brought a number of announcements that employers will need to consider when planning for the year ahead.

While there was some welcome stability, with no changes to employment income tax rates, many businesses are still facing rising wage costs, while employees continue to feel the pressure of household bills.

So, what should you be thinking about now? We’ve broken down the key announcements affecting employers, to help Shaw Gibbs’ clients understand what they mean in practice and how you can support your teams.

Preparing for the National Living Wage increase

April 2027 brings increases to the National Living Wage and National Minimum Wage. The National Living Wage for workers aged 21 and over rises by 3.9% to £13.21 an hour. Rates increase to £11.27 for 18 to 20-year-olds and £8.31 for 16 to 17-year-olds and eligible apprentices.

We recommend looking at your pay budgets now, rather than waiting until April. Think about the differences between entry-level pay and more experienced roles, so any adjustments make sense across your team.

The separate Real Living Wage, set voluntarily by the Living Wage Foundation, increases to £14.10 an hour (£15.45 in London).

Beyond meeting legal requirements, take a step back and assess whether your overall reward package helps you attract and keep the people you need.

Investing in the next generation of talent

The Budget gives greater focus to youth employment, with further support for apprenticeships and routes into work.

If you’re struggling to find experienced candidates, this could be a useful opportunity to think differently. Apprenticeships, graduate schemes and entry-level roles can help you develop the skills your business needs for the future.

As you review your recruitment plans, keep fairness and inclusion in mind. Growing expectations around pay transparency and gender pay gap reporting make this a good time to look at advertising, candidate assessment and hiring decisions.

If you’re using AI in recruitment, make sure hiring managers understand its limitations and potential bias or discrimination risks. It should support their judgement, not replace it.

Supporting employees with financial wellbeing

Money worries don’t disappear when the working day begins. They can affect concentration, stress levels, attendance, anxiety and productivity.

The reassuring thing is that helping people feel supported doesn’t require you to introduce expensive new benefits. A good starting point is what you already offer. Remind your team about existing benefits, financial education, salary sacrifice arrangements and Employee Assistance Programmes. Explain how to access them and help managers signpost support. Sometimes, a timely reminder is what’s needed – people might forget what support is available to them.

Reviewing policies on second jobs and side businesses

From April 2027, the Trading Allowance increases from £1,000 to £3,000, allowing people to earn more from second jobs or “side hustles” before paying tax or declaring income. With more people looking for additional income, it’s worth asking whether your outside employment policies reflect working life today.

Of course, there is a balance to strike – protecting your business interests, confidential information and working time, while recognising that employees may have legitimate interests outside work. Clear guidance on second jobs, conflicts of interest and confidentiality helps everyone understand where they stand, without unnecessarily restricting what people do outside of work.

Checking mileage and expenses policies

From April 2027, the tax-free approved mileage allowance rate for business mileage over 10,000 miles increases from 25p to 35p per mile. If your colleagues travel regularly, take a look at what this means for your expenses arrangements and explain any changes clearly. It’s also a chance to check travel policies remain fair and practical, particularly for mobile or field-based teams.

Don’t lose sight of the Employment Rights Agenda

With so much to consider in the Budget, it’s easy for other priorities to slip. Keep the Employment Rights Act on your agenda too.

As further changes take effect, such as the increased obligation to prevent workplace harassment, review contracts, policies and procedures. Give managers the support they need to handle workplace issues confidently, fairly and consistently.

If you haven’t reviewed your arrangements yet, now is a good time to identify gaps. We offer a range of resources to help with this, including a compliance checklist. Find them here.

What should employers do next?

You don’t need to tackle everything at once. Start with pay and reward, recruitment and workforce plans, and an Employment Rights Act readiness review. Planning now, while keeping your people supported, will help your business prepare for the year ahead.

The Reality HR team would be happy to talk through your policies, processes and next steps. Please get in touch with us at info@realityhr.co.uk or call 01256 328 428.