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Employment Allowance

Question for Treasury

UIN 76719, tabled on 17 November 2021

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential effect on levels of (a) pay and (b) employment of raising employment allowance.

Answered on

25 November 2021

The Government currently has no plans to increase the Employment Allowance (EA).

Since its introduction in April 2014, the EA has already been significantly increased, including rising from £3,000 to £4,000 in April 2020. This increase benefitted around 510,000 businesses, of which 65,000 businesses were estimated to be taken out of paying National Insurance contributions entirely.

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