UK Retail Sector Faces Potential Loss of 160,000 Part-Time Jobs Due to Tax and Wage Changes

New employer tax thresholds and wage increases could significantly raise costs for retailers, putting part-time roles and young workers at risk.

The British Retail Consortium (BRC) warns that up to 160,000 part-time retail jobs could be lost over the next three years due to changes in employer National Insurance contributions and a 6.7% rise in the National Living Wage.
From April, the threshold for employer National Insurance contributions will drop from £9,100 to £5,000, making it more expensive for businesses to employ part-time workers.
Retailers are expected to face an additional £5 billion in labor costs in 2025, prompting concerns about job cuts and higher consumer prices.
Young workers, students, and seasonal employees are particularly vulnerable, as part-time roles are disproportionately affected by the policy changes.
Industry leaders also express concerns over proposed employment legislation, including the Employment Rights Bill, which could further reduce flexible job opportunities.