One in ten part-time jobs could be lost following new regulations, BRC warns

We all know that retail is a vital source of employment for thousands across the country. It’s the largest private sector employer and the industry and its supply chains account for over a third of local jobs in 20% of parliamentary constituencies.

Now, the British Retail Consortium (BRC) has warned of the impact that both the Budget and the numerous regulatory changes could have on part-time jobs in the sector.

There are currently over 1.5 million part-time jobs in retail - a little over half of all retail jobs. This covers everything from students making extra money, or parents fitting work in around childcare, and seasonal workers providing vital support during peak trading periods.

In addition, almost one fifth of retail colleagues are under the age of 25, making the industry a vital first step on the career ladder for hundreds of thousands of young people.

Now, the BRC says that one in ten of these jobs - up to 160,000 roles - could be at risk - with rising employer National Insurance Contributions (NICs) and the new National Living Wage adding £5bn to retailers’ labour costs in 2025 alone, and understandably putting pressure on the industry to cut back on employment.

Part-time roles are particularly susceptible to the upcoming changes in the employer NICs thresholds, with retailers to be taxed for any employee earning more than £5,000 - down from the current level of £9,100. This will make it significantly more expensive to hire part-time workers than previously.

These effects would be compounded by some of the proposed changes under the Employment Rights Bill, which could force firms to reduce the number of local, flexible jobs. This would have the biggest impact on part-time workers, including seasonal and student jobs.

This call to protect part-time jobs comes as the British Retail Consortium launches its 2025 Manifesto for Retail, outlining a path for the retail industry to help kickstart investment in growth, people and sustainability across the UK.

Helen Dickinson, chief executive, said: “Retail is a key source of employment across the economy. Retail has long offered the first rung of the career ladder to hundreds of thousands of young people, playing a vital role in communities up and down the country. However, between rising employer NICs, higher NLW costs and incoming regulations, the government may be kicking away the ladder for the next generation.

“Retailers face a mountain of costs from the Budget and while they continue to absorb these where they can, higher prices and job losses are inevitable. If the government can find ways of mitigating the £7bn of costs facing the industry this year, as well as ensuring a pragmatic approach to the Employment Rights Bill that focuses on tackling unscrupulous employers, protecting employees while supporting employment, then many jobs would be saved.”