Businesses Face A Range of Cost Increases From April

25th February 2025

Today with the announcement of the energy price cap increase it is not going to be easy for businesses to hold prices.

There are range of other costs facing businesses already announced so it would be advisable to redraw a business plan going forward.

Here are some of the key increases that businesses will face in April 2025:

National Insurance Contributions: Employers' National Insurance contributions will rise from 13.8% to 15%. Additionally, the threshold at which employers start paying National Insurance will be lowered from £9,100 to £5,000 per year2.

Minimum Wage: The National Living Wage (NLW) will increase, impacting payroll costs for businesses employing minimum wage workers.

Employee Rights: There will be small increases in statutory payments such as maternity pay, paternity pay, adoption pay, shared parental pay, and parental bereavement pay.

Mandatory Identity Verification: Company directors and people with significant control (PSCs) will be required to verify their identity with Companies House.

Corporate Fraud Prevention: Large organizations will face a new corporate offence for failing to prevent fraud, which could lead to criminal liability if an employee or associated person commits fraud to benefit the organization.

These changes will have a significant impact on businesses, particularly small and medium-sized enterprises (SMEs), as they navigate higher costs and new regulatory requirements.