How to prepare for April 2025 legislation changes

By alisonbarlow|Feb 7, 2025|12:52 pm GMT

Last Autumn’s Budget was a sucker punch for UK hospitality. As an industry, we hoped to confirm that 75% business rate relief would be extended. Instead, we got increases to the National Minimum Wage, increases to employer National Insurance contributions, and a new 40% business rate relief. All are due to take effect in April.

On top of that, several new regulations are also coming into force this year. Here, we provide a quick round-up of all the updates to regulations and legislation that should be on your radar.

National Minimum Wage

This will be front of mind for many, with the National Minimum Wage (NMW) hourly rate going up 6.7% for over 21s on April 1. To make rates more consistent across age groups, NMW for those aged 18-20 will also increase by 16.3%, and apprentices will get an 18% bump.

Our latest article on NMW provides a detailed breakdown of the incoming changes.

How to prepare:

• Cover uniform expenses to ensure costs of necessary items don’t take hourly rates below NMW.
• Cap salary sacrifice deductions so they don’t take final pay below NMW.
• Consider automation to reduce the admin burden and risk associated with identifying affected staff and updating pay rates.
• Ensure accurate time and attendance reporting so unpaid overtime doesn’t take average hourly rates below NMW.

National Insurance contributions

Employer National Insurance contributions (NIC) will also increase in April. Rates will rise from 13.8% to 15%, with the threshold at which employers pay NIC for employees decreasing from £9,100 to £5,000. However, the removal of the £100,000 NIC liability cap means more businesses will now qualify for Employment Allowance (EA), an NIC relief.

Still have questions? Check out Alison Barlow’s recent article on NIC.

How to prepare:

• Review your budget and understand the impact on your business.
• Assess prices to determine whether they’re competitive or if you can increase them to offset rising costs.
• Consider your staffing structure and whether changing some part-time roles to full-time could reduce your NIC bill.
• Revise your hiring plan and cut any vacancies you don’t need.
• Examine pay structures and pension set-up to see if you can make NI and tax savings with salary sacrifice or increased pension contributions.
• Determine if you’re eligible for Employment Allowance.

Business rate relief

Business rate relief for retail, hospitality and leisure is set to tumble from 75% to 40% in another update slated for April 1. This will significantly increase operating costs for many businesses, putting additional pressure on tight margins.

How to prepare:

• Adjust financial forecasts and review your budget to determine the impact on your bottom line.
• Revise pricing strategies to account for increased costs.
• Check your rateable value if your business has changed since your last valuation, you may be eligible for reassessment.
• Understand your entitlement if you are in an area where the local authority offers additional relief or grants to local businesses.

Neonatal care leave

Another introduction for April is statutory Neonatal Care Leave (SNCL). This will be a day-one entitlement and applies to any parent whose child is 28 days or younger and is in care for at least seven consecutive days. The leave has two tiers and is capped at 12 weeks. Alison Barlow did a deep dive into SNCL and what it means for employers in this article.

For the full breakdown, read our article on Neonatal Care Leave.

How to prepare:

• Update policies and contracts to reflect this new entitlement.
• Communicate updates to all employees so they understand their rights.
• Put payroll processes in place to claim back statutory pay for any staff taking SNCL.
• Establish processes to cover staff who may take extended leave on short notice.

New rates for statutory leave

The rates for statutory maternity, paternity and adoption, shared parental, and parental bereavement pay will be updated from April 6. The earnings threshold for each will increase from £123 per week to £125 per week, with the standard rate rising 1.7% from £184.03 to £187.18.

The earnings threshold for statutory sick pay will also increase to £125 per week, with the standard rate rising to £118.75 per week, up from £116.75 a week.

Are you ready?

• Update policies and contracts to reflect the new rates.
• Inform staff of the update and ensure they understand their rights and entitlements.
• Update payroll processes to ensure statutory leave pay is calculated at the new rate.

Holiday calculations for irregular-hour workers

While reforms to holiday pay entitlement calculations came into force last year, for those with a holiday year starting in January, February, or March, this will be the first year they’ve had to comply with it.

Part-time and irregular-hour workers now accrue holiday at 12.07% of hours worked in a pay period. Workers on statutory leave also accrue holiday. Employers can ‘roll up’ holiday pay and pay it at the point of earning or allow workers to take it as leave.

Catch up on the latest requirements for holiday pay.

Employment Rights Bill

The Government promised sweeping reforms to workers’ rights with its new Employment Rights Bill. These changes are unlikely to be implemented until 2026 at the earliest, so we will keep you up-to-date on likely changes as the Bill progresses through Parliament.

A bumper April update

April brings a wave of regulatory changes. In recent years, the industry has become well-versed at adapting to shifting legislation, but this year’s updates to NIC, NMW, and the reduction in business rate relief will have a significant financial impact.