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This article was first published on LexisLibrary on 19 March 2014. Click here for a free 24h trial of LexisLibrary.

The Budget 2014 for employment lawyers

Abstract Employment analysis: With the Chancellor's speech still ringing in our ears, we bring together the most important features of the Budget 2014 for employment lawyers alongside expert analysis and industry comment. Analysis What was relevant in the Budget for employment lawyers? Original news Budget 2014: Consultation--Freedom and choice in pensions, LNB News 19/03/2014 169 It has been announced in the Budget 2014 that from April 2015 people will be able to access their defined contribution (DC) pension savings as they wish during retirement, subject to their marginal rate of income tax. HM Treasury has issued a consultation seeking views on details of the government's plans to offer greater flexibility in accessing DC pension savings, and has announced some interim changes that come into effect on 27 March 2014 which will introduce significantly more flexibility into the existing system. The consultation closes on 11 June 2014. What are the headlines for this year's Budget for employment lawyers and why? Ruth Christy, professional support lawyer at Blake Lapthorn : This year presented an uneventful Budget for employment lawyers (unless you enjoy the odd game of bingo), especially considering the changes in the last few years. The government is focused on growing the economy and job creation. Apprenticeships will be increased by 100,000 to encourage youth employment. The annual investment allowance is also being increased to 500,000 until at least the end of 2015. This could free up money for staff recruitment and training. Cuts to National Insurance will mean that by next year under 21s will be lifted out of the 'jobs tax' altogether. Pay restraints in the public sector will continue, but the Chancellor referred to the proposed rise in the national minimum wage (NMW) and the real terms increase. Natalie Painter, solicitor at Blake Lapthorn: The help with childcare payments announced before the Budget may also result in more parents going back to work or requesting an increase in hours. This may put more pressure on employers to carefully balance requests to work flexibly in light of the extension of the right from 30 June 2014 to all employees, not just those with children. There are also several changes afoot with pensions. It will now be much easier for people to take money from their pension pots and the rules on drawdown will be eased. For example, the minimum guaranteed income to be eligible for flexible drawdown has been reduced from 20,000 to 12,000. The focus on drawdown rather than pension pot accumulation could mean more employees are ready to retire sooner. In line with recent guidance from the Association of British Insurers, would-be pensioners will also be entitled by law

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to free impartial advice on what options are available when taking their pensions. The detail is not yet clear but employers may have to help with those costs. Are there any surprises? Ruth Christy: This time there were no new schemes announced such as the employee-shareholder surprise from last year (and--perhaps not surprisingly in view of the take-up by businesses--little mention of how this scheme has progressed since its introduction). Natalie Painter: Considering the turbulent times employment law has been through recently, no surprises or major announcements were expected and employment lawyers will be relieved that they only have to get to grips with the changes already announced which are being implemented this April and beyond, eg shared parental leave from 2015. What actions should employment lawyers be taking? Ruth Christy: This was apparently a Budget for makers, doers and savers. The government is encouraging an enterprising Britain with a growing economy. Employment lawyers need to be conscious of this growth as the government continues to push recruitment to cut the unemployment rate to a target of 5% over the next five years. This will require being ready to give full and proper advice as businesses take on more staff. The current trend in apprenticeships is only likely to increase--lawyers need a full understanding of the nuances of apprenticeships and latest government proposals. Clients will continue to need help with the red tape of employment law to ensure they can keep pace with this expected growth. Want to know more? A full overview of the Budget 2014 can be found here: Budget 2014: Tax Information and Impact Notes and related documents, LNB News 20/03/2014 2. The views expressed by our Legal Analysis interviewees are not necessarily those of the proprietor.