Latest news with #GrowthandSkillsLevy
Fibre2Fashion
11-06-2025
- Business
- Fibre2Fashion
Regulations could further dampen UK retail jobs in 2025 & beyond: BRC
Future regulations could further dampen UK retail jobs this year and beyond, according to the British Retail Consortium's (BRC) 'Retail Employment in 2025' report, which said though the Employment Rights Bill aims at improving employment practices, several aspects of the bill could raise costs and reduce employment without improving the life of workers. A recent survey of retail human resource directors showed that 61 per cent believed the bill would reduce flexibility in job offerings (versus 23 per cent saying flexibility will stay unchanged and 7 per cent saying such flexibility will increase), while over half believed it would reduce staff numbers for their company. Retail employment in the United Kingdom has already reduced by over 350,000 since 2015. Over 250,000 of these jobs have been part-time roles and over 280,000 have been jobs held by women. This is despite the total number of jobs in the economy rising. Future regulations could further dampen UK retail jobs this year and beyond, a British Retail Consortium report said. Though the Employment Rights Bill aims at improving employment practices, several aspects of the bill could raise costs and reduce employment without improving the life of workers, it said. Employment costs have risen significantly, posing a major challenge to the retail sector. Employment costs have risen significantly, posing a major challenge to the UK retail industry. Over the last decade, the minimum wage has almost doubled from £6.50 per hour to £12.21 per hour for those over 21. This is far outpacing inflation, which has risen by around a third over the same time period, the report observed. The rise in National Living Wage in April 2025 is expected to add £2.74 billion to wage bills of UK retailers. Together, the changes to National Living Wage and employer national insurance contributions have raised the cost of hiring a full-time worker by 10 per cent, and a part-time worker by over 13 per cent. The disproportionate impact on part-time workers, mainly as a result of the changing employer National Insurance minimum threshold, has meant that many flexible jobs are now at risk, with the BRC estimating that up to 160,000 part-time roles—more than one-in-ten—could be lost in the next three years. Retail jobs of the future will be characterised by increased flexibility, technology integration, continuous skills development and a strong emphasis on inclusivity and diversity, ensuring a better work-life balance, noted the report. Both the Growth and Skills Levy and the Employment Rights Bill will significantly affect how the industry drives future investment in its retail workforce, it added. Fibre2Fashion News Desk (DS)
Fashion Network
09-06-2025
- Business
- Fashion Network
BRC says government neglecting retail employment to support other industries
The British Retail Consortium (BRC) wants the government to do more to support dwindling retail employment. The body has highlighted growing threats while claiming the government is neglecting the industry while 'go[ing] out of its way to support fishing, steel manufacture and the automotive industry [jobs]'. Noting that employment numbers in the retail industry has already plummeted by 351,000 since 2015, a new BRC report, Retail Employment in 2025, cites a fall in retail jobs nearly 10 times bigger than the total number of jobs in the steel industry. The BRC said retail is having to manage ever-increasing tax, cost and regulatory burdens including rises in employer National Insurance (£2.4 billion), and National Living Wage (an extra £2.7 billion) since April. Since then, the cost of employing an entry level full-time worker rose by 10.3%, while the cost of employing someone part-time rose by 13.5%, it noted. Helen Dickinson, Chief Executive at the British Retail Consortium, said:'While factory closures are met by promises of action, the wave of retail jobs losses has been met with indifference from policymakers. 'UK retail is world-leading, innovative, and a major contributor to the UK economy, yet the stranglehold of increasing costs, taxes and red tape risks undermining the very things Government is seeking to create: local investment, growth, and increasing the numbers of people in work. 'Retailers face uncertainty around the new Growth and Skills Levy, on the outcome of the business rates reforms and on implementation of the Employment Rights Bill which could make it more difficult to offer flexible part-time roles or re-skilling people. Reducing part-time and training opportunities in retail would not only be a loss to the industry, the UK's largest private sector employer, but would also punish millions of people who benefit from these flexible, local jobs." She said the BRC estimates 160,000 part-time roles – more than one-in-10 – in the industry are currently at risk from being lost in the next three years. And she added: "But there is another way. If Government can ensure future policies do not hold back recruitment and training, then they will reap the benefits through more jobs and better productivity. The Employment Rights Bill is the next big test: government must tackle unscrupulous employers without hampering employment opportunities offered by responsible businesses.'
Yahoo
09-06-2025
- Business
- Yahoo
BRC warns UK retail jobs at risk as regulations loom for 2025 and beyond
The British Retail Consortium (BRC) has released a report highlighting the significant decline in retail employment, with job loss exceeding 350,000 since 2015. This drop is nearly tenfold the entire employment in the UK steel industry, which has seen substantial government action to avert factory shutdowns and preserve jobs. According to the Retail Employment in 2025 report, upcoming regulatory measures may continue to suppress job growth in the retail industry into 2025 and potentially for longer still. Despite the retail sector shedding a number of positions, in the BRC's view policy interventions have been notably absent. Retail is grappling with an increasing tax, cost and regulatory burden, unlike other sectors such as fishing, steel manufacturing and automotive, which have received more government support. Adjustments to employer National Insurance contributions have imposed a £2.4bn financial burden on the retail industry, and the rise in the National Living Wage in April has added another £2.7bn to retailers' wage expenses. Since that time, the expense of hiring a full-time entry-level employee has increased 10.3%, and the cost for part-time staff by 13.5%. The retail sector is the UK's largest private sector employer with a workforce characterised by youth and diversity. Latest figures from the Office for National Statistics indicate that as of the fourth quarter of 2024 reveal that it employs 2.9 million people and supports an additional 2.7 million jobs within the supply chain. Retail jobs offer significant flexibility and are a crucial source of local employment. With more than 1.5 million part-time positions, the sector allows individuals to work around personal commitments such as studies and childcare. Retail also provides essential entry-level opportunities and flexibility for those re-entering the workforce. As a significant employer in nearly every parliamentary constituency, retail offers jobs not only in major cities but also in towns and villages nationwide. The Employment Rights Bill, although intended to improve employment practices, could inadvertently increase costs and reduce employment without benefiting workers. A survey of retail HR directors revealed that 61% believe the Bill would lessen job flexibility, and over half anticipate that it would lead to staff reductions in their companies. However, there are potential opportunities ahead. The introduction of the new Growth and Skills Levy, set to replace the ineffective Apprenticeship Levy, may enable retail businesses to invest more in local communities and upskill their workforce, with an estimated 40% to 50% of employees in need of further training. BRC CEO Helen Dickinson stated: 'Retailers face uncertainty around the new Growth and Skills Levy, on the outcome of the business rates reforms and on implementation of the Employment Rights Bill which could make it more difficult to offer flexible part-time roles or reskill people. Reducing part-time and training opportunities in retail would not only be a loss to the industry, the UK's largest private sector employer, but would also punish millions of people who benefit from these flexible, local jobs. 'We estimate 160,000 part-time roles – more than one-in-ten – in the industry are currently at risk from being lost in the next three years. But there is another way. If government can ensure future policies do not hold back recruitment and training, then they will reap the benefits through more jobs and better productivity. The Employment Rights Bill is the next big test: government must tackle unscrupulous employers without hampering employment opportunities offered by responsible businesses.' "BRC warns UK retail jobs at risk as regulations loom for 2025 and beyond" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Fashion Network
08-06-2025
- Business
- Fashion Network
BRC says government neglecting retail employment to support other industries
The British Retail Consortium (BRC) wants the government to do more to support dwindling retail employment. The body has highlighted growing threats while claiming the government is neglecting the industry while 'go[ing] out of its way to support fishing, steel manufacture and the automotive industry [jobs]'. Noting that employment numbers in the retail industry has already plummeted by 351,000 since 2015, a new BRC report, Retail Employment in 2025, cites a fall in retail jobs nearly 10 times bigger than the total number of jobs in the steel industry. The BRC said retail is having to manage ever-increasing tax, cost and regulatory burdens including rises in employer National Insurance (£2.4 billion), and National Living Wage (an extra £2.7 billion) since April. Since then, the cost of employing an entry level full-time worker rose by 10.3%, while the cost of employing someone part-time rose by 13.5%, it noted. Helen Dickinson, Chief Executive at the British Retail Consortium, said:'While factory closures are met by promises of action, the wave of retail jobs losses has been met with indifference from policymakers. 'UK retail is world-leading, innovative, and a major contributor to the UK economy, yet the stranglehold of increasing costs, taxes and red tape risks undermining the very things Government is seeking to create: local investment, growth, and increasing the numbers of people in work. 'Retailers face uncertainty around the new Growth and Skills Levy, on the outcome of the business rates reforms and on implementation of the Employment Rights Bill which could make it more difficult to offer flexible part-time roles or re-skilling people. Reducing part-time and training opportunities in retail would not only be a loss to the industry, the UK's largest private sector employer, but would also punish millions of people who benefit from these flexible, local jobs." She said the BRC estimates 160,000 part-time roles – more than one-in-10 – in the industry are currently at risk from being lost in the next three years. And she added: "But there is another way. If Government can ensure future policies do not hold back recruitment and training, then they will reap the benefits through more jobs and better productivity. The Employment Rights Bill is the next big test: government must tackle unscrupulous employers without hampering employment opportunities offered by responsible businesses.'
Observer
03-05-2025
- Business
- Observer
Unemployment is not just an economic problem — it's a crisis of lost hope
Unemployment is not just an economic problem — it's a crisis of lost hope. Across the world, millions of young people leave school only to find that qualifications alone don't guarantee a job. They are stuck in limbo: educated, yet unemployed. The irony? Businesses everywhere are crying out for skilled workers. The solution, tested and proven across continents, lies in one word: apprenticeships. In England, the government is about to launch bold reforms aimed at turning the tide. A new Growth and Skills Levy will replace the outdated apprenticeship levy, expanding funding for shorter, more flexible apprenticeships and new foundation-level schemes tailored for young people. The aim? To directly bridge the gap between school and the job market, especially in sectors with acute shortages like healthcare, education, technology, and manufacturing. This is not charity — it's strategy. Research from the European Commission and global institutions shows that apprenticeships are among the most effective ways of securing employment for young people. In countries like Austria and Ireland, up to 90 per cent of apprentices are employed immediately after completing their training. In the UK, apprentices not only gain practical experience but often outperform university graduates in terms of job readiness. Why? Because apprenticeships combine theoretical learning with hands-on experience. They don't just produce workers — they produce professionals who know how to solve real work problems from day one. And it's not just young people who benefit. For employers, apprenticeships are a smart investment. Companies that embrace apprenticeship schemes report higher productivity, better staff retention, and even lower recruitment costs. In the UK businesses report gaining up to £18,000 per apprentice during training — and those numbers rise once apprentices are fully qualified and integrated into the workforce. But who pays for all this? In successful apprenticeship systems, the cost is shared — a partnership between government and business. In the UK, for instance, small businesses are eligible for government funding that covers up to 100 per cent of apprentice training costs. Larger businesses contribute via a national levy, which they can use to fund training within their own companies. Under the new UK reforms, employers will be asked to focus their investment on younger, less experienced workers, while funding more advanced, master's level training themselves. This balance ensures that companies are fully committed to apprenticeship schemes — investing not just money, but time and mentorship. At the same time, it ensures that no willing young person is excluded from opportunity simply because of cost. Internationally apprenticeship programmes have proven just as effective. In Germany, Switzerland, and the Netherlands, dual vocational training — combining classroom study with practical work experience — has slashed youth unemployment and built highly competitive economies. In Yemen, even in the shadow of war, a young man named Muhammad al Tahri went from despair to business owner after completing a solar panel installation apprenticeship. His story is a powerful reminder that practical training can transform lives, even in the harshest conditions. Oman, like many nations, faces the dual challenge of youth unemployment and a demand for skilled labour. Oman has ambitious, intelligent youth. It also has employers looking for talent. The missing link is a structured, well-funded, quality apprenticeship system that connects the two. To make apprenticeships cost effective government, private enterprise and education providers need to join forces. Let employers identify the skills they need. Let technical institutions adapt their training. Let government fund the future through smart, targeted investment that delivers real economic returns — in the UK as much as £21 for every £1 invested, according to the UK's National Audit Office. A thriving apprenticeship culture is not just a nice idea. It is an economic necessity for Oman, a social imperative and the most cost-effective investment it can make in its future. It's time to stop talking about unemployment and start tackling it with the tools that work. And nothing works better than apprenticeships. Countries with high levels of unemployment are running out of time. There is an AI Tsunami on the horizon and when it arrives those employees without the necessary skills will find themselves out of a job.
