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Employment Allowance

Question for Treasury

UIN 77455, tabled on 18 November 2021

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of raising the Employment Allowance in order to support small employers to offer (a) more roles and (b) higher wages.

Answered on

26 November 2021

The Government has no current plans to increase the Employment Allowance (EA). The EA has already been significantly increased since its introduction in 2014. 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 increase benefitted around 510,000 businesses, of which 65,000 businesses were estimated to be taken out of paying National Insurance contribution bills entirely.

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