Autumn Budget Announcements 2024

Click to view the Autumn Budget 2024: BMA member briefing (published on the 31st October 2024)

31st October 2024

To All practices in Surrey and Sussex LMCs

I am writing following a number of queries from colleagues to the LMC regarding the implications for GP practices following the 2024 Budget.

Minimum Wage Changes (Implemented from 1st April 2025)

• The minimum wage for over 21-year-olds (known as the National Living Wage) will rise from £11.44 to £12.21 an hour (an increase of 6.7%).
• For 18–20-year-olds, the minimum wage (also known as the National Minimum Wage), will rise from £8.60 to £10.00 per hour (an increase of 16.3%).

These changes form part of the Government’s intention of having a single such rate for all adults.

National Insurance (Implemented from 1st April 2025)

There is no change in employee National Insurance rates, but employer’s costs will rise, because:

• Employer NI rates will rise by 1.2% from 13.8% to 15%.
• The threshold at which NI is deducted is being reduced from £9500 annually, to £5000.

Although the Employment Allowance has been adjusted to mitigate the impact of these changes, GP practices, whose work is predominantly within the NHS public sector, are not eligible to claim this allowance.

Clearly these changes have a significant potential financial impact on practices; the budget also announced a substantial uplift to the NHS budget overall. GPC England has already raised to both NHS England and the DHSC the serious risks for all General Practices at these increased costs. This financial challenge would also include the cost of maintaining salary differentials amongst employees.

Obviously the Budget involved significant further changes, and the BMA has published this update for all colleagues: Autumn Budget 2024: BMA member briefing

I appreciate this creates uncertainty for GP partnerships, but as soon as an update is available, I will circulate this to all colleagues.

Dr Julius Parker ,Chief Executive