Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

STEMManufacturingLatest NewsLabour marketRecruitment & retention

Going ahead with NI rise is ‘illogical’, says manufacturing body

by Ashleigh Webber 1 Mar 2022
by Ashleigh Webber 1 Mar 2022 Rishi Sunak has come under pressure to cancel the planned national insurance rise
Ilyas Tayfun Salci / Shutterstock.com
Rishi Sunak has come under pressure to cancel the planned national insurance rise
Ilyas Tayfun Salci / Shutterstock.com

The government is facing renewed pressure to delay the planned national insurance increase, with a trade body warning that firms will have to rethink their hiring plans which may jeopardise the UK’s economic recovery.

Stephen Phipson, chief executive of manufacturers’ organisation Make UK, said the government should avoid “shooting business in the foot” as businesses face escalating costs during a key period for the UK’s post-pandemic recovery.

The 1.25% health and social care levy will come into effect in April 2022, which aims to raise “£12bn per annum to help pay for health and social care. It will initially be added to national insurance, but from April 2023 it will become its own tax with a separate line on employees’ payslips.

A survey of almost 300 manufacturing firms by Make UK found that three in five believe the levy will have a moderate (33%) or significant (27%) impact on their hiring intentions.

Nearly three-quarters said they would, or would be likely to, pass on the tax rise to customers in the form of price increases.

Phipson said: “The proposed increase remains illogical and will be even more ill-timed given how circumstances have rapidly changed since it was announced.

National insurance hike

Employment fears over national insurance increase

Tax wealth instead of employers, report urges

“The cost burden on business is continuing to escalate and, while some of these increases are due to global events, government must avoid adding shooting business in the foot by an entirely self-imposed decision.”

The government has come under increasing pressure to cancel the planned NI rise, but Boris Johnson and chancellor Rishi Sunak said in January that it “must go ahead”, stating that “there is no magic money tree”.

Manufacturers are facing a multitude of challenges in accessing labour, the Make UK survey revealed, including increased difficulty in sourcing workers from the EU; an expensive labour market; changing attitudes towards flexibility; and reduced hours and early retirement.

Fifty-seven per cent of manufacturers have seen an increase in retirement or reduced hours in the wake of the pandemic.

“Vacancies within the industry are at a time-series high, with the highest manufacturing vacancies per 100 employed for 20 years reported by the ONS’s latest employment figures,” its latest Manufacturing monitor report says.

“The current rate of vacancies in the industry stands at 4.0 roles per 100 employed. By way of comparison, the average figure across that same 20-year time period is only 1.9, demonstrating just how short for labour the manufacturing sector is at the moment.”

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Forty per cent said the costs associated with wages and employment had been a “major increase” for their business, while 47% said they had seen a “manageable increase” in these costs.

Workforce planning opportunities on Personnel Today


Browse more workforce planning jobs

Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

previous post
Commuters grapple with rail fare hike as Tube workers strike
next post
Staff with long Covid should be treated as having disability

You may also like

Pay awards in real terms could fall for...

21 May 2025

Government defends NIC relief in UK-India trade deal

7 May 2025

Locum doctor loses long-running tax case

9 Apr 2025

Half of companies cut back on hiring due...

7 Apr 2025

Trump’s tariffs to hit growth and jobs, warn...

3 Apr 2025

Spring Statement: no relief on employers’ tax hikes

26 Mar 2025

HR and businesses respond to Spring Statement

26 Mar 2025

‘Light relief’ for workers as inflation drops

26 Mar 2025

Pharmacies to work to rule over higher employment...

18 Mar 2025

Boost pensions via salary sacrifice to offset NI...

17 Mar 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+