IAAF GIPA Market Intelligence Report for March 2025 has highlighted that companies plan to increase prices to cope with increased staffing costs as a result of national insurance rises coming into effect 7 April 2025.
In an Office of National Statistics (ONS) survey, companies plan to pass on the increased cost to their customer, with 35% taking this strategy (and it has increased by 10 points since September 2024).
Interestingly, a big increase is to reduce investments (15% mentioned this) and it was only considered by 5% in September.
Generally speaking it seems like automotive professionals are looking to use more tools from their toolkit to manage these costs, compared to when they were last interviewed in in 2024, this suggests the economic pressures are building up.
Kwik Fit, which employs about 5,000 people, estimates the NICs rises will cost it £5m. This will have a knock-on effect on prices, and recruitment, said Mark Slade, its managing director.
“We are really careful to make sure KwikFit is always competitive and benchmarked against the people around us – but the reality is that includes increasing prices.” He added: “There will be some people who aren’t replaced over the coming year and that will be in the senior levels.”
Increase in NICs Rate:
The rate of employer NICs (secondary Class 1 NICs) will increase from 13.8% to 15%.
Lowering of the Secondary Threshold:
The threshold at which employers become liable to pay NICs on employees’ earnings will decrease from £9,100 a year to £5,000 a year.
Increase in Employment Allowance:
The Employment Allowance, which allows businesses to deduct a certain amount from their employer NICs bill, will increase from £5,000 to £10,500 and the £100,000 eligibility cap will be removed.
The finalists have been announced for the Automechanika Birmingham Garage Awards 2026, hosted by the Independent Automotive Aftermarket Federation (IAAF) and headline sponsored by LKQ Euro Car Parts.
As the UK transitions from winter into spring, workshops are increasingly dealing with the aftermath of months of harsh road conditions. Cold temperatures, standing water and repeated freeze–thaw cycles leave roads scarred with potholes and uneven surfaces – all of which place additional stress on critical vehicle systems, including brakes.
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