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Hospitality Industry: Employers' Contributions

Asked by Edward MorelloLiberal DemocratDepartment for Business and TradeTabled Answered 7 May 2025UIN 49265

The question

To ask the Secretary of State for Business and Trade, whether his Department plans to monitor the potential long-term impact of increased employer National Insurance contributions on employment trends in the hospitality sector.

Answered by Gareth Thomas

Hospitality businesses are at the heart of our communities and play a vital role in supporting economic growth.

I chair the Hospitality Sector Council, which meets quarterly in which we discuss issues the sector faces. I also meet regularly with individual businesses to hear about the pressures they are facing.

We’re increasing the Employment Allowance to £10,500, allowing 865,000 employers to pay no NICs this year. This, for example, means employers can hire up to four full-time workers on the National Living Wage without paying employer NICs.

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