CIPD warning | Looming National Insurance changes prompt widespread plans to cut hiring and increase redundancies

There has been a significant fall in hiring confidence and a sharp increase in redundancy intentions over the last quarter, with redundancy intentions rising to their highest levels in the last ten years outside of the of the pandemic, a survey of more than 2,000 UK employers by the CIPD shows.

As employer confidence falls, the CIPD is urging the Government to accelerate its plans around business support and skills policy so firms can confidently plan for the long-term and make the investments they need to boost productivity and growth.

The survey found that the significant fall in firms’ employment intentions is linked to the impending increases to employer National Insurance contributions (NICs) and the National Minimum Wage, announced in the Budget in October 2024.

Among businesses that expect their employment costs to increase: