Overview

• Labour's £25 billion National Insurance hike and 6.7% minimum wage increase are set to take effect, raising employer costs significantly starting this week.
• Analysts project 85,000 job losses, primarily among low-paid workers, as businesses struggle with increased employment costs.
• Retailers are expected to pass £1.72 billion of the additional costs onto consumers through price hikes, further straining household budgets.
• The Budget Responsibility (OBR) has halved its 2025 economic growth forecast to 1%, citing reduced business confidence and higher costs.
• The average UK household is estimated to be £3,500 worse off by the next election due to rising costs and slower wage growth.