Autumn Budget 2026
Autumn Budget 2026
The Autumn Budget on 28 October 2026 did not have a heavy on employment. Instead, Chancellor John Healey concentrated on measures targeted at easing the cost-of-living crisis as prolonged wars in the Middle East and Ukraine, and the global uncertainty they continue to fuel, are reflected in volatile oil markets. There were however still some important points which business owners and employers need to note.
Here’s a summary of what was announced and what it means for your business.
Minimum wage rates rise from April 2027
From 1 April 2027, all minimum wage rates go up by 3.9%.
| Rate | From 1 April 2027 |
| National Living Wage (21 and over) | £13.21 per hour |
| National Minimum Wage 18 to 20 year olds | £11.27 per hour |
| National Minimum Wage 16 to 17 year olds and eligible apprentices | £8.31 per hour |
| Accommodation offset | £11.53 per day |
For a full-time employee, the new National Living Wage works out at about £910 a year more in gross pay.
What to do now: check pay bands for staff earning just above the new rates, as the gap between grades can shrink. Review salary sacrifice arrangements so they do not take any employee’s pay below the minimum, and update your 2027/28 workforce budgets.
Payrolling benefits in kind becomes mandatory
From 6 April 2027, employers must payroll company cars, vans, fuel and medical benefits in real time, instead of reporting them on P11Ds. Most other benefits follow from 6 April 2028, Employment-related loans and accommodation stay outside the mandatory rules, but employers can choose to payroll them voluntarily.
What to do now: review the benefits you currently provide. Check with Black Mountain’s team if you are unsure what needs to happen as we can help.
Source: .gov.uk
No change to employer National Insurance
The budget made no change to the employer National Insurance rate of 15%. Changes to payroll costs in 2027 will therefore be driven mainly from wage increases, rather than tax changes.
Payroll transparency in job adverts
In his Budget speech, the Chancellor said the Government will “act soon” on pay transparency in job adverts. this follows a government consultation, which closed on 27 October 2026. It proposed that employers publish pay information in job adverts, or give it to candidates in writing before interview. No detail or timetable has been confirmed yet.
What to do now: check that your salary ranges are consistent and that you can justify them. Once ranges are published, existing staff will be able to see what new starters are offered. Our HR Team can help review this with you!
Non-compete clauses
The Government plans to legislate so that non-compete clauses are no longer a barrier to hiring. It will set out its detailed position in early 2027, before legislation, and will consult on how restrictive practices are used more widely.
What to do now: review the restrictive covenants in your employment contracts and think about what really protects your business, such as confidentiality and non-solicitation terms.
Hiring from overseas
If an employer pays the Immigration Skills Charge or Certificate of Sponsorship fees, this will not be treated as a taxable benefit in kind. This applies to payments made on or after 28 October 2026.
How Black Mountain can help
Black Mountain’s in-house payroll and HR specialists can help you plan for these changes so you have peace of mind and your business remains compliant. Contact us on 01256 384700, alternatively you can fill out our contact us form on our website and a member of our team will reach out.