The Chancellor delivered the Autumn Budget on 28 October 2026 announcing a range of measures which will be of interest to employers, from wage increases and employee share incentives to future reform of non-competes and parental leave. Some measures are due to take effect in 2027, whilst others await consultation or further detail.
Non-Competes
The Government reiterated its commitment to legislate on non-competes, with proposed reforms applying “across the whole economy”. Consultation on the wider use of restrictive practices is expected shortly, and the Government has indicated it will set out a detailed position on these issues in early 2027 ahead of legislation. See our previous article.
Parental Pay for the Self-Employed
From April 2029, parental pay is expected to be extended to eligible self-employed fathers, partners and adopters in Great Britain (who currently have no entitlement). The Budget paper noted that those recently employed or unemployed, or with irregular or broken employment histories, who do not qualify for statutory paternity or adoption pay may also benefit, subject to having sufficient work and earnings history. Further details, including eligibility requirements and how the right will operate in practice, are awaited.
Pay and Transparency
The National Minimum Wage and National Living Wage will increase by 3.9% from 1 April 2027:
- National Living Wage (21 and older): increasing from £12.71 to £31.21
- National Minimum Wage (18 to 20 year olds): increasing from £10.85 to £11.27
- National Minimum Wage (16-17 year olds and apprentices): increasing from £8.00 to £8.31
Separately, the Chancellor promised to “act soon” to ensure women are promoted and paid fairly, noting he was aware of the calls for pay transparency in job adverts to close gender pay gaps. Further detail is awaited. Please see our previous article.
Employee Share Incentives
There are two types of tax-advantaged executive share option schemes: Enterprise Management Incentives (‘EMI‘) and the Company Share Option Plan (‘CSOP‘). EMI is only available to companies with no more than 500 employees and gross assets of not more than £120m. CSOPs are available irrespective of size.
The individual limit for EMI is £250,000 and for CSOP is £60,000 but the limits are linked, which means that no individual can hold tax-effective options in excess of £250,000.
From 6 April 2027 the rules will become significantly more generous:
- Firstly, the CSOP limit will increase to £120,000
- Secondly, the EMI and CSOP limits will no longer be linked
Hence, it will be possible for an individual to hold up to £370,000 of tax-effective options – £250,000 EMI and £120,000 CSOP.
Immigration
Some important changes to immigration law were announced, impacting visa salary requirements, immigration costs, visa curtailment periods and certain sponsorship routes. The announcements are summarised in our recent article.
Youth Employment
Funding was confirmed for the Youth Employment and Skills Package, including the £3,000 Youth Jobs Grant, the Jobs Guarantee extension to 22–24-year-olds and £2,000 apprenticeship hiring payments for non-levy employers taking on eligible young apprentices. Local apprenticeship services will also receive £100 million over two years to expand local apprenticeship services.
Women in Work
Two new voluntary industry standards were announced to support inclusive employment practices in tech and fairer access to investment for female entrepreneurs. In addition, a new scale-up women’s programme is due to test how to overcome barriers to fundraising and investment for women founders.
The Government also announced that it will provide £15 million to the Office for the Impact Economy to work with businesses, investors and philanthropists in respect of additional funding to support women and girls, and underpin the work of the National Taskforce for Tackling Misogyny, chaired by the Minister for Women and Equalities.
For more information on the Budget, see Government announcement and the full Budget which provides more detail.
