Employers and employees are set to be hit by the National Insurance hike from April
The CEO of a marketing company has announced a pay rise for his employees to help them cover the incoming National Insurance hike from Boris Johnson’s government.
Gloucestershire-based 71a is a technology and banking marketing firm that works with comparison sites and insurance providers, among others, to get their message across to consumers.
The company plans to boost its staff’s pay ahead of April, when both companies and workers will be hit with a 1.25 per cent increase in National Insurance.
In addition to the pay rise, 71a’s CEO Edward Newman is also trialling a four-day work week for his staff as part of his ambition to make 71a the best company to work for in the UK.
Speaking to Gloucestershire Live, the CEO said that the move was “the least he could do” considering what his staff have had to face in the last couple of years.
He continued: “I understand why National Insurance contributions need to go up this year, but I didn’t want to see my team under financial pressure.
“This increase, coupled with the massive hike in energy and food bills, is enough to force them to think about what they need to cut back on – I don’t want them worrying.
“For some employees, the difference is an additional £42 month, which for those with single income families is a full tank of petrol.”
Our CEO @edward_71a has made the brave decision to trial a 4-day wk. We're happy to answer q's about how we're going to do this. We're going to document the trial & be honest about how the team & our clients are finding it – pros & cons, we won't be shy. https://t.co/A7GtLhYOmZ
— 71a (@71auk) February 2, 2022
Newman encouraged other business owners to follow suit if “they can afford to.”
His announcement comes just days after Prime Minister Boris Johnson and Chancellor Rishi Sunak confirmed the National Insurance hike to 1.25 per cent, going back on an election promise.
Marketing assistant at 71a, Amy Harker, was grateful for the move from her boss.
She said: “The cost of living is spiralling out of control.
“I’ve just bought my first home, and I’ve been worried about how I’m going to juggle all the bills.
“It feels like a slap in the face that the government is pressing ahead with the National Insurance hike, considering how much energy bills have risen.”
Related links:
- ‘Four-day working week with same pay transformed workers’ lives’ says UK bank
- CEO who gave all employees $70k salary says staff saved company by taking voluntary pay-cut
- Families on breadline ‘could break down due to national insurance hike’
