Springfield to gift National Insurance savings to employees
Housebuilder The Springfield Group is to gift its own National Insurance savings to its 898 employees, following confirmation that the UK Government will reverse the 1.25% increase, which came into effect in April this year.
Last week, Chancellor Kwasi Kwarteng confirmed that the National Insurance increase will be scrapped on November 6, reducing tax for 920,000 businesses by nearly £10,000 on average next year.
The Springfield Group, made up of Springfield Properties, Springfield Partnerships, Dawn Homes, Walker Group, Tulloch Homes and Mactaggart & Mickel Homes, had budgeted for the higher employer National Insurance contributions and will ensure employees receive the benefit of the scrap, by passing the amount saved on to them.
To achieve this support, Springfield will award all employees an increase in their salaries. This, together with the employees’ own saving, should equate to a pay increase of around 3%. This follows two inflationary rises already awarded to employees this year as well as the introduction of private healthcare for all employees across the group.
Innes Smith, chief executive officer of The Springfield Group, said: “Last week’s announcement on National Insurance savings for individuals was welcomed. We have decided to bolster this saving for our employees by passing on the benefit that we, as an employer, will also receive.
“Looking after our employees is a fundamental core of our ethos. We recognise the pressure people are under with increased cost of living and we are very pleased to be able to offer additional support to our people in this way.”