Retail Employment Costs Crank Up by 10‑plus %
What’s Driving the Numbers?
Two price‑tags just landed in the silverware drawer of UK retailers: National Living Wage hikes and a sharper National Insurance Contribution (NIC) rule. Add them together, stir in a packaging tax, and you’ve got a bill that’s looking a bit lumpy.
In plain English: it’s almost a £5 bn extra spend each year for retailers, climbing to £7 bn once October’s Extended Producer Responsibility kicks in.
Entry‑Level & Part‑Time Jobs Are the Main Swingers
- Entry‑level wages jump over 10 % across the board.
- Part‑time contracts see a whopping 13.5 % extra cost per worker.
- The new NIC threshold (now a blunt £5,000) claws away more casual slots, meaning fewer employers want to hand out those flexible roles.
Why This Matters to You
Part‑time gigs are the lifeline for many – a first job after school, a way for parents to return to the workforce, or a side hustle for those juggling caring duties. With the fresh cost burden, those ladders could get rung‑ed up or, in worse cases, locked.
Stats that’re Hard to Ignore
- Only 1.5 million part‑time retail jobs in 2024 – the lowest ever recorded.
- Down 200,000 jobs since 2018.
- British Retail Consortium forecasts another 160,000 part‑time roles slipping away in the next three years.
Retailers’ Reply
“The Chancellor’s October Budget is handing retailers a £5 bn hit to their employment bill,” says Helen Dickinson, CEO of the British Retail Consortium. “Add in new packaging tax and we’re looking at £7 bn of extra costs in one year. With margins only 2‑4 %, the result is higher prices, fewer job openings, and shrinking store counts.”
Finance directors have already put their fingers on the pulse – half are trimming hours and staff to keep the lights on.
What the Government Wants
The Work & Pensions Secretary’s mantra is “helping people who can work to do so.” But the cost jump is the opposite of their promise: it presses those early‑career, part‑time jobs into the dust.
Helen urges a rethink: “We need policies that ease hiring, not tighten it, at this crucial time.”
Stay Informed
Want real‑time updates on retail wage changes? Pack your phone, tap the link, and keep an eye on the market’s pulse.
