774,000 Hospitality Workers Dragged Into New NICs Threshold

New analysis from UKHospitality reveals that a fifth of hospitality’s workforce will be dragged into the new employer NICs threshold for the first time.

The regressive changes to employer National Insurance Contributions (NICS) will hit hospitality hardest, due to the high number of employees working part-time or flexibly.

Currently, more than 1.2 million hospitality staff are not eligible for employer NICs. In April, that number will be slashed to just over 450,000 people. That’s more than 774,000 workers that will be newly eligible for employer NICs. In total, this will cost the hospitality sector £1 billion.

Combined with £2.4 billion of other costs hitting in April, businesses are already taking hard decisions to cut investment, freeze recruitment, cut jobs, reduce hours or increase prices.