News story

Employment Allowance: New data reveals benefit of tax cut for UK employers

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Brand new analysis shows benefit of the Employment Allowance in each region and sector across the UK.

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New data released today (Thursday 31 July) reveals how over 725,000 UK employers are benefitting from the Employment Allowance in each region and sector across the UK.

The Employment Allowance is a reduction in National Insurance Contributions (NICs) that an employer pays on their employees, and is worth up to £2000 for eligible businesses and charities.

By the end of June, 725,000 employers across the UK had benefitted from the Employment Allowance. This number is expected to increase throughout the remainder of the tax year.

Announced at Budget 2013, the allowance is simple to claim and easy to administer. Businesses simply confirm their eligibility for the allowance through their regular payroll processes.

Chancellor George Osborne said:

Backing businesses is a key part of the government’s long term economic plan.

Small businesses make a vital contribution to our economy, creating jobs and stimulating growth.

We’re cutting the tax on jobs and today’s figures show our approach is working.

Breakdown of take up by region

Region Number of employers
North East 22,000
North West 74,000
Yorkshire and the Humber 54,000
East Midlands 51,000
West Midlands 59,000
East of England 72,000
London 107,000
South East 109,000
South West 68,000
Northern Ireland 20,000
Scotland 57,000
Wales 30,000
Breakdown of takeup

Breakdown of take up by sector

Sector Number of employers
Catering, accommodation and food 65,000
Admin and support 49,000
Agriculture, forestry and fishing 25,000
Arts, entertainment and recreation 16,000
Construction 91,000
Education 8,000
Electricity, gas, steam and air conditioning supply <1,000
Finance and insurance 5,000
Health and social care 6,000
Information and communication 48,000
Manufacturing 65,000
Mining and quarrying <1,000
Other service activities, trade unions, household goods repairsm hairdressing ect 32,000
Professional, scientific and technical industries 109,000
Real estate 17,000
Transportation and storage 23,000
Water supply and waste management 3,000
Retail, wholesale and the motor industry 162,000
Published 31 July 2014