Skills Talent Partnership
Navigating Rising National Insurance Contributions
The April 2025 increase in employer National Insurance Contributions (NICs) means many businesses will face higher payroll expenses. This change presents a challenge, especially for small—to medium-sized employers who need strategies to offset these rising costs. Funded training programmes can offer a practical solution, enabling employers to manage expenses while investing in workforce skills.
Understanding the NIC Increase
From April 2025, the employer NICs rate will rise from 13.8% to 15%, decreasing the NIC threshold from £9,100 to £5,000. While the employment allowance will provide partial relief, this increase will impact payroll significantly, underscoring the need for cost-effective workforce planning.
Leveraging Funded Training Programmes
Funded training can ease the financial impact, providing development opportunities at minimal costs.
These initiatives empower businesses to build skilled teams without substantial investment, increasing productivity while managing payroll costs. Options range across skills and sectors, making these programmes valuable for varied industries.
Balancing Costs with Recruitment and Retraining Programmes
Funded recruitment programmes, like Skills Bootcaps and Apprenticeships, offer additional benefits, helping organisations bring in new talent without burdening budgets.
Retraining existing employees also adds value by enhancing current skill sets, thus achieving greater productivity without increasing headcount or expenses.
Many employers, successfully use funded training to balance financial pressures while upskilling teams. These efforts have improved workforce efficiency and retention, helping employers manage their bottom line despite rising costs.
As the April 2025 NIC approaches, proactive investment in funded training is essential. Employers who leverage these programs are well-positioned to mitigate NIC increases, leading to long-term growth through strategic skills development.
Prepare for April 2025:
Explore Funded Training Options to Balance Costs
Contact us to learn more about funded training programmes to help you manage payroll expenses while investing in your team’s growth.