Pay and benefits: key differences in Scotland and Northern Ireland
Updating authors: Ian Holloway and Nicky Stibbs, consultant editor (Scotland): Gillian MacLellan, consultant editor (Northern Ireland): Gareth Walls
XpertHR editor: Zuraida Curtis
Future developments
Scotland
Income tax personal allowances: Personal allowances are frozen until tax year 2027/28. See Pay As You Earn for more details.
Income tax thresholds: Income tax thresholds are frozen until tax year 2027/28. This will not apply to Scottish taxpayers where rates and thresholds are a shared responsibility, set by the Scottish Parliament annually.
Bankruptcy and diligence: The Bankruptcy and Diligence (Scotland) Bill was introduced to the Scottish Parliament on 27 April 2023. The Bill proposes various changes to the diligence process including proposed changes relating to earnings arrestments where an employer is served with an arrestment order. If enacted, the Bill will also put in place enabling provisions for regulations to allow for a "mental health moratorium" on diligence. The Bill is making its way through the Parliamentary process. On 25 May 2023, the Economy and Fair Work Committee, responsible for scrutinising the Bill, launched a consultation on the Bill. The consultation closed on 21 July 2023 and the responses have been published.
Concerns have been expressed that the "mental health moratorium" is too narrow in scope and will not help enough people who are experiencing a mental health crisis. Parliament's Economy and Fair Work Committee has asked the Scottish Government to reconsider the Bill and extend the criteria to include more people experiencing mental health crises.
Northern Ireland
Allocation of tips: In the rest of the UK, the Employment (Allocation of Tips) Act 2023, expected to come into force in 2024, will provide for how employers must deal with tips, gratuities and service charges. No corresponding legislation has been introduced in Northern Ireland.
Fit note reform and voluntary occupational health frameworks: On 22 November 2023, the UK Government in its Autumn Statement announced a review of the fit note process and development of occupational health frameworks. This will not apply in Northern Ireland.
