Employees of a Moray firm are getting a little extra help to get them through the cost-of-living crisis.
Elgin-based housebuilder The Springfield Group made a budget saving of £500,000 when the UK Government recently did a U-turn on plans to increase National Insurance contributions (NICs), for both employers and employees, by 1.25%.
We recognise the pressure people are under, with the increased cost of living.”
Innes Smith, chief executive, The Springfield Group.
Bosses at the firm chose to pass on that amount to the workforce, helping a total of 898 employees at a time of national crisis over soaring energy bills and rampant inflation.
Springfield chief executive Innes Smith told The Press and Journal it “seemed like a good opportunity to help the staff out”.
He added: “Costs are going up for everyone – much more than normal – and there’s been a series of interest rate rises.
“We’ve also increased free healthcare for all employees, which not only helps them but also an NHS that is under pressure.
“There’s an energy cap but people are still facing considerable increases in their fuel bills and everything else going up.
“It’s a difficult time for everyone just now.”
Extra pay rise
Springfield has also implemented an extra pay rise across its workforce this year.
It gave staff another 3% in addition to the 3% increase they received in the firm’s normal pay review in March.
The government’s sudden change of heart on NICs was an unexpected opportunity to help workers, Mr Smith said, adding: “We were getting something for nothing.”
Chancellor Kwasi Kwarteng’s move to axe the increase, which was due to kick in from November 6 will reduce taxes for about 920,000 UK businesses next year, saving them nearly £10,000 on average.
London-listed Springfield had budgeted for the higher amount.
Its decision to pass on the saving to employees, together with the benefit to workers who will no longer be facing an increase in their own NICs, equates to a further boost to pay of about 3%.
Mr Smith said: “Looking after our employees is a fundamental core of our ethos.
“We recognise the pressure people are under, with the increased cost of living.
“We are very pleased to be able to offer additional support to our people in this way.”
Springfield’s total headcount jumped late last year when it took over Inverness rival Tulloch Homes in a deal worth £56.4 million.
It was the fourth acquisition for the group following the purchase of Redrow’s Scottish operations in 2011, and the acquisition of Dawn Homes and Walker Group in 2018 and 2019 respectively.
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