A planned rise in employer National Insurance contributions could disrupt stability across the plumbing and heating industry, affecting job creation and investment in an already fragile construction sector.
Chancellor Rachel Reeves’s recent decision to raise employer National Insurance from 13.8% to 15%, along with a reduction in the NI payment threshold, has drawn criticism from the UK’s plumbing and heating sector.
Though the increase in Employment Allowance from £5,000 to £10,500 will offer some support to smaller businesses, the Scottish and Northern Ireland Plumbing Employers’ Federation (SNIPEF) has cautioned that these new measures may exacerbate difficulties in the construction sector.
This adjustment could limit current jobs, restrict new roles, and constrain critical investments in skills development.
Fiona Hodgson, Chief Executive of SNIPEF, said: “The plumbing and heating industry is experiencing steady demand, but ongoing challenges, from rising material and labour costs to frequent payment delays, are destabilising our members’ ability to thrive and grow.
“While we welcome the Employment Allowance increase for the smallest employers, this increase in employer National Insurance, particularly with a lowered threshold, severely limits crucial investments in equipment, training and development, the very goals Labour’s own manifesto pledged to support.”
