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Employment Allowance: Small Businesses

Question for Treasury

UIN HL3598, tabled on 1 November 2021

To ask Her Majesty's Government what plans they have to extend the small business employment allowance to support smaller employers seeking to expand.

Answered on

11 November 2021

Since 2014, businesses and charities throughout the UK have been able to claim the Employment Allowance (EA) and reduce their employer National Insurance contributions bills every year.

In April 2020, the Government increased the EA from £3,000 to £4,000 and focused the relief on helping smaller businesses take on extra staff, fulfil their potential, and boost employment. This built on an increase from £2,000 to £3,000 in 2016, meaning the value of the support offered to smaller businesses through the EA doubled in four years. Over 1 million employers benefitted from this relief in 2020-21. The Government currently has no plans to increase the EA.

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