‘We will see closures’: The industries hit hardest by national insurance hike

Published

2 months ago

April 5, 2025

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The cost of having staff is going up this Sunday as the increase in employers’ national insurance kicks in.

Chancellor Rachel Reeves announced in the October budget employers will have to pay a 15% rate of national insurance contributions (NIC) on their employees from 6 April – up from 13.8%.

She also lowered the threshold at which employers pay NIC from £9,100 a year to £5,000 a year, meaning they start paying at an earlier point on staff salaries.

This is on top of the national minimum wage rising, the business relief rate for hospitality, retail and leisure reducing from 75% to 40% and the rising cost of ingredients and services.

Sky News spoke to people working in some of the industries that will be hardest hit by the rise in NIC: Nurseries, hospitality, retail, small businesses and care.

NURSERIES

Nearly all (96% of 728) nurseries surveyed by the National Day Nurseries Association (NDNA) said they will have no choice but to put up fees because of the NIC rise, leaving parents to pick up the shortfall.

The NDNA has warned nurseries could close due to the rise, with 14% saying their business is at risk, 69% reducing spending on resources and 39% considering offering fewer places with government-funded hours as 92% said they do not cover their costs.

Sarah has two children, with her youngest starting later this month, but they were just informed fees will now be £92 a day – compared with £59 at the same nursery when her eldest started five years ago.

“I’m not sure how we will afford this. Our salaries haven’t increased by 50% during this time,” she said.

“We’re stuck as there aren’t enough nursery spaces in our area, so we will have to struggle.”

Karen Richards, director of the Wolds Childcare group in Nottinghamshire, has started a petition to get the government to exempt private nurseries – the majority of providers – from the NIC changes as she said it is unfair nurseries in schools do not have to pay the NIC.

She told Sky News she will have to find about £183,000 next year to cover the increase across her five nurseries and reducing staff numbers is “not off the table” but it is more likely they will reduce the number of children they have.

Joeli Brearley, founder of the Pregnant Then Screwed campaign group, told Sky News: “Parents are already drowning in childcare costs, and now, thanks to the national insurance hike, nurseries are passing even more fees on to families who simply can’t afford it.

“It’s the same story every time – parents pay the price while the government looks the other way. How exactly are we meant to ‘boost the economy’ when we can’t even afford to go to work?”

Purnima Tanuku, executive chair of the NDNA, said staffing costs make up about 75% of nurseries’ costs and they will have to find £2,600 more per employee to pay for the NIC rise – £47,000 for an average nursery.

“The government says it wants to offer ‘cheaper childcare’ for parents on the one hand but then with the other expects nurseries to absorb the costs of National Insurance Contributions themselves,” she told Sky News.

“High-quality early education and care gives children the best start in life and enables parents to work. The government must invest in this vital infrastructure to make sure nurseries can continue to deliver this social and economic good.”

HOSPITALITY

The hospitality industry has warned of closures, price rises, lack of growth and shorter opening hours.

Dan Brod, co-owner of The Beckford Group, a small southwest England restaurant and country pub/hotel group, said the economic situation now is “much worse” than during COVID.

The group has put plans for two more projects on hold and Mr Brod said the only option is to put up prices, but with the rising supplier costs, wages, business rates and NIC hike they will “stay still” financially.

He told Sky News: “What we’re nervous about is we’re still in the cost of living crisis and even though our places are in very wealthy areas of the country, Wiltshire, Somerset and Bath, people are feeling the situation in their pockets, people are going out less.”

Mr Brod said they are not getting rid of any staff as their business strongly depends on the quality of their hospitality so they are having to make savings elsewhere.

“I’m still optimistic, I still feel that humans need hospitality but we’re not valued as an industry and the social benefit is never taken into account by government.”

Aktar Islam, owner/chef at two Michelin-starred Opheem in Birmingham, said the NIC rise will cost him up to £120,000 more in staff costs a year and to maintain the financial position he is in now they would have to make “another million pounds”.

He got emails from eight suppliers on Thursday saying they were raising their costs, and said he will have to raise prices but is concerned about the impact on diners.

The restaurateur hires four commis chefs to train each year but will not be able to this year, or the next few.

“It’s very short-sighted of the government, you’re not going to grow the economy by taxing hospitality out of existence, these sort of businesses are the lifeblood of our economy,” he said.

“They think if a hospitality business closes another will open but people know it’s tough, why would they want to do that? It’s not going to happen.”

The chef sent hundreds of his “at home” kits to fellow chefs this week for their staff as an acknowledgement of how much of a “s*** show” the situation is – “a little hug from us”.

RETAIL

Some of the UK’s biggest retailers, including Tesco, Boots, Marks & Spencer and Next, wrote to Rachel Reeves after the budget to say the NIC hike would lead to higher consumer prices, smaller pay rises, job cuts and store closures.

The British Retail Consortium (BRC), representing more than 200 major retailers and brands, said the costs are so significant neither small or large retailers will be able to absorb them.

Andrew Bailey, the governor of the Bank of England, told the Treasury committee in November that job losses due to the NIC changes were likely to be higher than the 50,000 forecast by the Office for Budget Responsibility (OBR).

Nick Stowe, chief executive of Monsoon and Accessorize, said retailers had the choice of protecting staff numbers or cancelling investment plans.

He said they were trying to protect staff numbers and would be increasing prices but they would likely have to halt plans to increase store numbers.

Helen Dickinson, head of the BRC, told Sky News the national living wage rise and NIC increase will cost businesses £5bn, adding more than 10% to the cost of hiring someone in an entry-level role.

A further tax on packaging coming in October means retailers will face £7bn in extra costs this year, she said.

“This huge cost burden will undoubtedly reduce investment in stores and jobs and is likely to lead to higher prices,” she added.

SMALL BUSINESSES

A massive 85% of 1,400 small business owners surveyed by the Federation of Small Businesses (FSB) in March reported rising costs compared with the same time last year, with 47% citing tax as the main barrier to growth – the highest level in more than a decade.

Just 8% of those businesses saw an increase in staff numbers over the last quarter, while 21% had to reduce their workforce.

Kate Rumsey, whose family has run Rumsey’s Chocolates in Wendover, Buckinghamshire and Thame, Oxfordshire, for 21 years, said the NIC rise, minimum wage increase and business relief rate reduction will push her staff costs up by 15 to 17% – £70,000 to £80,000 annually.

To offset those costs, she has had to reduce opening hours, including closing on Sundays and bank holidays in one shop for the first time ever, make one person redundant, not replace short-term staff and introduce a hiring freeze.

The soaring price of cocoa has added to her woes and she has had to increase prices by about 10% and will raise them further.

She told Sky News: “We’re very much taking more of a short-term view at the moment, it’s so seasonal in this business so I said to the team we’ll just get through Q1 then re-evaluate.

“I feel this is a bit about the survival of the fittest and many businesses won’t survive.”

Tina McKenzie, policy chair of the FSB, said the NIC rise “holds back growth” and has seen small business confidence drop to its lowest point since the first year of the pandemic.

With the “highest tax burden for 70 years”, she called on the chancellor to introduce a “raft of pro-small business measures” in the autumn budget so it can deliver on its pledge for growth.

She reminded employers they can claim the Employment Allowance, which has doubled after an FSB campaign to take the first £10,500 off an employer’s annual bill.

CARE

The care sector has been warning the government since the October that budget care homes will be forced to close due to the financial pressures the employers’ national insurance rise will place on them.

Care homes receive funding from councils as well as from private fees, but as local authorities feel the squeeze more and more their contributions are not keeping up with rising costs.

The industry has argued without it the NHS would be crippled.

Raj Sehgal, founding director of ArmsCare, a family-run group of six care homes in Norfolk, said the NIC increase means a £360,000 annual impact on the group’s £3.6m payroll.

In an attempt to offset those costs, the group is scrapping staff bonuses and freezing management salaries.

It is also considering reducing day hours, where there are more staff on, so the fewer numbers of night staff work longer hours and with no paid break.

Mr Sehgal said: “But what that does do unfortunately, is impact the quality you’re going to be able to provide, at a time when we need to be improving quality, but something has to give.

“The government just doesn’t seem to understand that the funding needs to be there. You cannot keep enforcing higher costs on businesses and not be able to fund those without actually finding the money from somewhere.”

He said the issue is exacerbated by the fact local authority funding, despite increasing to 5%, will not cover the 10% rise.

“It’s going to be a really, really tough ride. And we are going to see a number of providers close their doors,” he warned.

Nadra Ahmed, executive co-chair of the National Care Association, said those who receive, or are waiting to access, care as well as staff will feel the impact the hardest.

“As providers see further shortfalls in the commissioning of care services, they will start to limit what they can do to ensure their viability or, as a last resort exit the market,” she said.

“This is very short-sighted, with serious consequences, which alludes to the understanding of this government.”

Government decided to ‘wipe the slate clean’

A Treasury spokesperson told Sky News the government is “pro-business” but has “taken the difficult but necessary decisions to wipe the slate clean and properly fund our public services after years of declines”.

“Our budget choices have already delivered an NHS with falling waiting lists, a £3.7bn rescue package for social care, and vital protection for Britain’s small businesses,” they said.

“We’re making tough choices today to secure a better tomorrow through our Plan for Change. By investing in economic growth and early years education while capping corporation tax, we’re putting more money in working people’s pockets and giving every child the best start in life.”

UK

‘I lost my father to suicide’: Schoolgirl’s assembly on the hardest of subjects

Published

7 hours ago

May 29, 2025

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'I lost my father to suicide': Schoolgirl's assembly on the hardest of subjects

Evie likes scary movies, musicals and Taylor Swift – but there is something that sets her apart.

The 16-year-old hates the way other children at school casually joke about suicide.

“People saying things like ‘I’m going to kill myself if I have to sit another maths test’, you’d be surprised how often people say things like that,” Evie Roodhouse tells me.

“People don’t understand the seriousness, saying they are ‘depressed’ as if it’s a positive thing. I think it’s become even a trend that some people think is cool or funny.”

Evie and younger sister Ada lost their father in 2018, and what they rarely tell anyone is that was suicide. However, Evie’s approach to this deeply personal subject is about to change. She has decided to give a school assembly on the subject.

Eight-year-old sister Ada supports Evie’s decision and has experienced her own frustrations: “She [Evie] gets people joking about it,” says Ada, “In my school I just get people, like, complaining about their parents being gone for a week, say on holiday, especially their dad. ‘My dad’s going to this place for a week, and I won’t get to see him.’ ‘Oh he’s not here on Father’s Day.’ Or, ‘he’ll be away for a whole month, that’s almost as much as you.’ – It’s not. It’s really not.”

It’s entirely understandable that, up until now, Evie has been extremely private around the cause of her father’s death. Her presentation on the subject for a room of her peers at Brighton Hill Community School in Basingstoke, would surely be one of the most courageous school assemblies ever given.

The night before, I met up with Evie along with Mother Caroline and sister Ada. “This is the first time I’ve openly shared my own personal experience, my story so that’s where the nerves are coming in,” Evie says as we get on to the subject of her presentation.

Her previous experience of confiding in friends is that their response varies between asking invasive questions, wanting details that Evie doesn’t want to share, or they feel awkward and change the subject. What Evie wants is for people to be able to talk about the subject and understand how to talk about it, especially if they themselves are struggling.

“With mental health we know that opening up and talking about it is the best thing you can do,” she says. “I think we understand ourselves better if we talk about our mental health. Communication is the best way around the stigma.”

However, this conversation around Evie’s home dining table is going to take us to some dark places, and it occurs to me how difficult it must have been for Caroline to explain what happened, to her young children. Did she have a choice? Could she have invented some other form of death to protect them from the truth?

Caroline explains her decision to tell them. “I had no idea Steve was going to take his own life. On the day I found out, luckily a friend of mine contacted an amazing charity called Winston’s Wish and they gave me some important advice, and that was honesty.

“However, uncomfortable that was, however brutal that was at the time. I’m grateful for that advice – because it’s meant that we’ve always had trust between us.”

Suicide rates in the UK have remained roughly the same for the last two decades, although the 7,055 deaths recorded in 2023 was the highest rate since 1999.

Men are three times more likely to take their own lives, and with Evie and Ada’s father there was no warning and no note to explain why.

Caroline says loss by suicide is “grief with a microphone”. One of the hardest things for her to manage has been her feeling of abandonment.

“I wanted to talk to Steve, and he’s the person responsible for not being here. Trying to get your head round the fact that, yes, they took their own life, but they weren’t in a rational state at that point in time, but then you’re feeling angry at the same time. It’s tiring. It’s exhausting.”

Eight-year-old Ada picks up: “You don’t blame them for being sad – but you’re also angry that they are not here.”

“…And that they didn’t tell you that they were struggling,” adds Caroline.

“They act all happy and fine. It’s quite unusual,” says Ada.

“It doesn’t make sense, does it?” offers Caroline. It is just a glimpse into the impossible conversations, the heartbreak and tears this family has endured.

Photographs of Steve with his children tell of a loving husband and father, hugging his children close, taking pride in his girls and valuing his precious time with them.

Evie tries to explain her own feelings on this, “Rather than someone being taken away from you – that person’s chosen to take themselves away from you.”

“They don’t want to be with you,” says Ada.

Evie picks up: “There’s sadness that they must have been struggling – but you made that decision. You must have thought whatever you had going on, was a bigger deal than me needing a father in my life, and that’s been a big thing for me.”

But Caroline has a consoling thought – a moment she says that changed everything. “It wasn’t that long ago maybe last year I was asked a question that completely knocked me off my feet – and took away most of my anger. I was asked by somebody – ‘What do you think Steve would say if he could come back and speak to you, right now.'”

“And my response to that, knowing what an amazing person he was, is that he would say ‘sorry’ and he didn’t want to cause us any pain. And in that moment imagining him saying ‘sorry’ – took away all my anger.”

Then she adds, “The problem is that replaces the anger with sadness.”

There is a deep chasm in the room. They will never know why. There are no answers. No clues and no way to change that. The profound complexity of emotions is something anyone would struggle with, yet both children Evie have found ways of coping.

“You have the first couple of years of feeling – ‘this is going to be my life now this is how I’m going to feel…’ says Evie. Her emotions break through, she pauses to compose herself then determinedly finishes her point. “…and I think being able to move past that and understand that you are not defined by that loss – and you are more than the person who took themselves away from you – and you are stronger.”

The next day as the assembly loomed Evie emitted quiet confidence. Mum Caroline came to watch and said she felt protective but at the same time “unbelievably proud”.

What then happened was an extraordinary 20 minutes. Around 80 children watched the presentation, which included a thought-provoking animated film that Evie helped to create. She told the room how she lost her father to suicide in 2018 when she was nine years old and warned, “When you hear someone joking about something that has completely turned your world around it can be so hurtful.”

She also had sage advice on where teenagers can get help themselves, listing school provision and organisations outside of school such as Childline and the Samaritans.

Research recently published by the Mental Health Foundation found a third of young people accessed self-harm content online and the theme this year’s Mental Health Awareness week was community. Evie’s presentation couldn’t have been more appropriate.

She told her peers: “Unfortunately, in my experience the people who don’t talk about it, the people who keep their emotions down and don’t want to speak about those feelings are the people who we lose thorough suicide.”

Caroline was right to be proud and so too was headmaster of Brighton Hill Community School, Chris Edwards. He said afterwards: “I bang on about this quite a lot – the younger generation – and the press that they get does not match the depiction that I see day in day out.

“They are phenomenal – and the assembly we’ve seen today which Evie ran was one of the most impressive things I’ve seen in my career. Not just because she was able to tackle a subject that’s very difficult to her, but to do it to her peers is doubly difficult. And I was also proud of the way the children responded.”

It is rare this subject is talked about, and it must be done sensitively. Evie gave a masterclass in how to do it.

Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK.

UK

Liverpool fan says his baby was flung 15ft in his pram and his partner run over during trophy parade

Published

14 hours ago

May 28, 2025

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Liverpool fan says his baby was flung 15ft in his pram and his partner run over during trophy parade

A father has told Sky News how his partner was driven over, and his baby son was flung 15ft in his pram, after they were hit by a vehicle during the Liverpool parade collision.

Daniel Everson, 36, had been with Sheree Aldridge and their five-month-old baby, Teddy, at Liverpool FC’s victory parade on Monday.

“The best day of my life turned into worst”, said Daniel, a lifelong fan of ‘The Reds’.

Daniel described the moment the car came towards him and his family.

“I tried to hold on to the front of the car and try and stop it, push it, do whatever I could [to stop it] from hitting my partner and my baby.

“Me and my partner were flat on the roof, on the bonnet… we were just both trying to hold on for dear life with Ted next to us.

“And my partner went under the wheels of the car, of the front of the car, and it rolled over her leg, and I just bounced off to the side, but my boy and his pram got bounced totally in the opposite direction – about 15ft down the road.

“As soon as that happened, I just started screaming for my partner, and I found her and I asked where Teddy was, and she didn’t know… and I found him and he was okay, thank God.

“He was in the road, in his pram, on his back, and I grabbed him. I chucked the pushchair to the side and I ran up to some paramedics with him.”

Daniel, from Telford, said he felt like he was in “hell” as he rushed back to find Sheree.

“I had to carry her up the road with four police officers holding her while she was screaming and crying. At that point, I didn’t know what was wrong with her, but I could see the injuries to her leg,” he explained.

Sheree, 36, is recovering at Aintree University Hospital after suffering muscle tissue damage. Daniel has been allowed to return home with Teddy after he was assessed at Alder Hey Children’s Hospital.

“I feel a lot of emotions right now. Upset, angry, traumatised. A lot of unanswered questions that need to be answered.

“To me, it just wasn’t handled properly – the situation with the car getting that far into the crowd, in my opinion, he should not have got anywhere near us.”

Merseyside Police have now been given more time to question a 53-year-old arrested after a car struck a crowd at Liverpool FC’s victory parade on Monday.

The suspect, who police have described as a white British man from the local area, is being held on suspicion of attempted murder, dangerous driving, and drug driving.

Police have said the extra time they have been given to question the suspect runs into Thursday.

UK

Andrew Tate and his brother Tristan charged with rape in the UK

Published

19 hours ago

May 28, 2025

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Andrew Tate and his brother Tristan charged with rape in the UK

Andrew Tate and his brother Tristan Tate have been charged with rape and other offences in the UK.

Andrew Tate, 38, faces 10 charges, including rape, actual bodily harm, human trafficking and controlling prostitution for gain, relating to three women.

His brother Tristan Tate, 36, faces 11 charges relating to one woman – including rape, actual bodily harm and human trafficking.

The charges were authorised in January 2024, but full details have only been released now.

Bedfordshire Police issued an international arrest warrant for the brothers over allegations, which they “unequivocally deny”, said to have occurred between 2012 and 2015.

The Tate brothers are facing separate allegations of trafficking minors, sexual intercourse with a minor and money laundering in Romania.

They are also accused of human trafficking and forming a criminal gang to sexually exploit women in a different case, which has been sent back to prosecutors.

They are due to be extradited to the UK following the conclusion of proceedings in Romania.

A Crown Prosecution Service (CPS) spokesperson said: “We can confirm that we have authorised charges against Andrew and Tristan Tate for offences including rape, human trafficking, controlling prostitution and actual bodily harm against three women.

“These charging decisions followed receipt of a file of evidence from Bedfordshire Police.

“A European Arrest Warrant was issued in England in 2024, and as a result the Romanian courts ordered the extradition to the UK of Andrew and Tristan Tate.”

The spokesperson added: “However, the domestic criminal matters in Romania must be settled first.

“The Crown Prosecution Service reminds everyone that criminal proceedings are active, and the defendants have the right to a fair trial.

“It is extremely important that there be no reporting, commentary or sharing of information online which could in any way prejudice these proceedings.”

Representatives for Andrew Tate have been contacted by Sky News for comment.

Lawyer Matt Jury, of McCue Jury & Partners, representing several alleged British victims of Andrew Tate, said: “We welcome the clarity from the Crown Prosecution Service that our authorities are working to ensure the Tates face justice here in the UK – they cannot be allowed to escape extradition.

“At the same time, we ask once more that CPS admit its mistake in failing to prosecute Tate when he lived in the UK and finally charge him for the rape and assault of the other three women, our clients, who originally filed criminal complaints against him as long ago as 2014 but were failed by the system.

“They deserve justice, too.”

The allegations were subject to a police investigation, which was closed in 2019.