As part of the recent Budget measures, it has been confirmed that the Help to Save scheme is to be extended by a further 2 years, until April 2027. The last date an account can be opened under the current scheme will be 5 April 2027. Around 517,000 Help to Save accounts have been opened since its launch in 2018.

The Help to Save scheme is intended to help those on low incomes to boost their savings. Eligible users of the scheme can save between £1 and £50 every calendar month and receive a 50% government bonus. The 50% bonus is payable at the end of the second and fourth years and is based on how much account holders have saved. The bonus is paid directly into the account holder’s chosen bank account.

This means that account holders on low incomes can receive a maximum bonus of up to £1,200 on savings of £2,400 for 4 years from the date the account is opened.

The eligibility rules for the scheme will also be widened from April 2025 with the scheme opening to all working Universal Credit claimants earning at least £1 a month. The government has also launched a consultation on the most effective way to deliver the new wider scheme. The consultation is open for comment until 22 January 2025.

Keeping an eye on competitors offers crucial advantages, especially in a dynamic market. Here’s why it pays off:

Improving Market Positioning
By observing competitor pricing, branding, and marketing strategies, you can position yourself better in the market. Adapting your approach based on competitors' moves allows you to highlight your unique strengths, stand out, or fill market needs they might overlook.

Sparking Innovation
Competitors often inspire new ideas. Observing their innovations can lead to enhancements for your own products or services. This isn’t about copying; it’s about learning from what’s working in your field and adapting those ideas to fit your brand and customer needs.

Benchmarking Performance
Tracking competitor performance can establish benchmarks for your own success. By comparing aspects like customer satisfaction or market share, you can identify areas where you need improvement or areas where you already excel.

Identifying Market Gaps
Studying competitors’ services and customer feedback can reveal gaps—opportunities for you to step in with solutions or offerings that meet overlooked needs. This is a great way to differentiate your brand and address unmet demands.

Spotting Industry Trends Early
Competitors often indicate broader industry trends. Tracking their shifts helps you prepare for changes in regulations, customer preferences, or new technologies. Getting a head start on trends ensures you are proactive rather than reactive.

Managing Competitive Threats
Regularly monitoring competitors can alert you to potential threats. If a competitor is targeting your customer base or launching a similar product, you can plan countermeasures, ensuring you’re not caught off guard by sudden shifts.

Understanding Customer Preferences
Reviewing competitor feedback and testimonials offers insights into customer priorities and expectations. Knowing what clients value can inform your service improvements, helping you attract and retain customers who may feel underserved elsewhere.

Boosting SEO and Content Strategy
Competitor analysis, especially online, can refine your digital presence. Observing their SEO tactics or popular content can inspire similar strategies that boost your own web traffic and customer engagement.

Opportunities for Collaboration
Competitor analysis isn’t always about rivalry; sometimes, it reveals partnership potential. If a competitor has a complementary service, a collaboration might benefit both businesses, offering customers a more comprehensive experience.

Fostering Continuous Improvement
Monitoring competitors encourages you to maintain a proactive improvement mindset. When you’re aware of their advancements, it keeps you from becoming complacent, promoting ongoing growth and evolution in your own business.

In essence, competitor monitoring is about staying informed, proactive, and adaptive. By observing what works (or doesn’t) for others, you can make smarter strategic decisions, find opportunities, and stay competitive.

As part of the October Budget the Chancellor announced the highest ever level of government investment of £20.4 billion in research and development for next year, reinforcing the government’s commitment to back the UK’s R&D ecosystem to drive economic growth and achieve its five national missions.

The Budget will fully fund the UK’s association with Horizon Europe, providing scientists and innovators access to the world’s largest collaborative funding scheme, with over £80 billion available for cutting-edge projects under the EU scheme. The Department for Science, Innovation and Technology (DSIT) R&D budget has increased to £13.9 billion, and core research funding has also been increased to a record £6.1 billion, bolstering the UK’s leading research base.

A significant part of this Budget is dedicated to the UK’s life sciences sector, a cornerstone for positioning the UK as a leader in science and innovation, through a £520 million commitment to the Life Sciences Innovative Manufacturing Fund.

Additionally, the Chancellor announced funding for several other programmes to be led by DSIT. Together, these investments underscore the importance of science and technology in driving economic growth essential to raising living standards and funding public services, positioning the UK at the forefront of global innovation and progress.

The Chancellor of the Exchequer, Rachel Reeves announced significant increases to the Minimum Wage rates on the eve of the Budget. The Chancellor confirmed that the government has accepted in full the proposals of the Low Pay Commission (LPC) for increasing minimum wage rates from 1 April 2025. The LPC’s advisory remit was overhauled by ministers in July to consider the cost of living.

The National Living Wage (NLW) rate will increase from £11.44 to £12.21 on 1 April 2025 and represents an increase of 77p or 6.7%. The NLW is the minimum hourly rate that must be paid to those aged 21 or over. The increase represents a pay rise of over £1,400 a year for someone working full-time and earning the NLW.

It was also announced that the National Minimum Wage (for 18-20 year olds) will increase from £8.60 to £10.00 an hour. This is largest increase ever in the NMW (an impressive 16.3% increase) that will see younger workers having their pay boosted by up to £2,500 next year. This increase is part of a move to narrow the gap in wage rates for 18-20 years olds and the NLW and ultimately create a single adult wage rate for all those aged 18 and over.

The NMW rates for 16 to 17 years old will increase from £6.40 to £7.55 – an increase of £1.15 or 18% per hour – from next April. The Apprentice Rate will mirror this increase in line with earlier recommendations by the LPC.

As had been widely predicted, the Chancellor announced increases to the rate of National Insurance contributions (NICs) that are paid by employers. The main rate of secondary Class 1 NICs will increase by 1.2% to 15% (from 13.8%) effective from 6 April 2025. The Class 1A and Class 1B employer rates will also increase in line with this change.

The Class 1 NICs secondary threshold, the level at which employers start to pay NICs, will also be reduced to £5,000 (from £9,100) per year. This change will take effect from 6 April 2025 and last until 5 April 2028. Thereafter, the secondary Class 1 NICs threshold will be increased annually in line with the Consumer Price Index (CPI).

To help small businesses with these changes it was also announced by the Chancellor, Rachel Reeves, that the Employment Allowance will increase from £5,000 to £10,500. Currently, the allowance is only available to employers that have employer NIC liabilities of under £100,000. The Chancellor confirmed that this threshold will be removed and that all eligible small businesses will benefit from the increased rate. Government figures have confirmed that this results in 865,000 employers paying no NICs next year. These changes will come into effect from April 2025.