"Research from Barnett Waddingham reveals that the Chancellor's announcement of an increase to the National Living Wage by 4.1%, starting April 2026, will be detrimental for many UK employers. As many as one in three (33%) believe that this change would have a detrimental impact on their business. This comes alongside more of the Chancellor's announced policies, and a change to salary sacrifice."
"One in four employers (25%) believe restricting the ability to offer salary sacrifice would have a detrimental impact on their business. At a time where businesses have been increasing salaries to keep/attract skilled workers, 84% businesses said they increased employee wages in the past year. By company size: Companies with 5,000 employees or more were less likely to have increased salaries/wages (77%), and more likely to have increased in values and purpose (82%)."
"While the Budget headlines have put the impact on everyday people in the spotlight, we should not forget the impact the Chancellor's decisions will have on businesses. After last year's National Insurance hikes, new tax rules, an increase in the National Living Wage and the removal of salary sacrifice on pension contributions will push some businesses beyond a squeeze and into suffocation. "Many organisations now have little choice but to pursue cost saving initiatives and make greater use of"
Barnett Waddingham research shows a 4.1% National Living Wage rise from April 2026 will be detrimental for many UK employers, with 33% expecting negative impact. From April 2029, the NIC-exempt amount for employee salary-sacrifice contributions will be capped at £2,000, and 25% of employers expect this restriction to harm their business. Eighty-four percent of businesses increased employee wages in the past year to retain or attract skilled workers. Large firms (5,000+ employees) were less likely to raise wages (77%) and more likely to boost focus on values and purpose (82%). Businesses prioritise cheaper energy, childcare, R&D tax incentives, PMI tax breaks, and ethnicity pay-gap guidance.
Read at London Business News | Londonlovesbusiness.com
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