Six new law changes coming into effect in February 2021 – and how they affect you

A series of new law changes coming into effect in February could directly change your day-to-day life.

These amendments to legislation will touch on everything from the tyres on your car to the ending of the COVID-19 lockdown restrictive measures.

This guide will explain each of the new law changes, the date from which they are set to be implemented and how they could affect you.

Whether it be what to do with your pension or changes relating to the furlough scheme, it is all covered below.

Here’s what you need to know:

New ‘investment pathways’ coming for pensions

Many hit the age of 55 and are immediately relieved at what they can now do with their pension, but forget that the money will not last forever.

They may need assistance in trying to find the most responsible way to use it.

This is why, as of this year, those looking to cash in on their pension will be offered a variety of four different avenues to explore when determining how they want the next five years to look financially, before seeing four blueprint plans that will help them achieve that five-year goal.

They can seek professional advice when deliberating this, but that will come with a cost.

Steve Cameron, director of Aegon Pensions, said “From February, customers going into drawdown without taking advice will be asked to choose which of four retirement scenarios best matches their plans for their pension funds over the next five years and will then be offered the pathway that looks to best match those plans.

“While this should help individuals avoid making particularly unwise investment choices, it won’t replace the personalised recommendations from a professional adviser on where to invest and how much income can safely be taken to last throughout life.”

Changes to Tyres

As of July of last year, the government confirmed that tyres aged 10 years and older will be banned on the front axles of lorries, buses and coaches.

As of 1 February 2021, new laws will make it illegal to fit tyres aged 10 years or older to the front axle of a goods vehicle with a maximum gross weight exceeding 3,500 kg, the front axle of a bus or coach – including minibuses – and the rear axle of a minibus with single rear wheels fitted.

The COVID-19 Lockdown

Despite Prime Minister Boris Johnson suggesting the current lockdown restrictions could remain in place until mid-March, 15 February is earmarked as the date for the first review of the current rules to determine whether they are having the desired effect and whether the UK is in any kind of position to ease the measures.

February could see some changes to things like a return to the regional tier system.

CJRS claims to be made public

HMRC will begin publishing details of employers’ Coronavirus Job Retention Scheme claims on GOV.UK from February 2021.

The information will see the employer’s name, an indication of the value of the claim within a banded range and the company number (for companies and LLPs) all published in relation to claim periods starting on or after 1 December 2020.

As of February, employees aided by the furlough scheme will also be able to see details of claims made for them after 1 December 2020 in their personal tax account.

Furlough claim cut-off date

The Job Retention Bonus for employers from January can be claimed from 15 February.

Post-termination non-compete clauses

BEIS Consultation closes on measures to reform post-termination non-compete clauses in contracts of employment ends on February 26.

Non-compete clauses are often used in contracts of employment to prevent an individual’s ability to work for a competing or rival business, or to establish a competing business for a defined period after they leave.

In a bid to aid the economic recovery from the impacts of COVID-19, the government is exploring different options to help boost innovation and create the best possible conditions for new jobs.

The aim of the consultation is to find views on the proposals surrounding making non-compete clauses enforceable only when the employer provides compensation during the term of the clause alongside a differing proposal to make post-termination, non-compete clauses in contracts of employment unenforceable.