National Living Wage and Employer Changes: What They Mean for Your Business

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Changes to employment costs can have a significant impact on businesses across the UK, particularly in labour-intensive sectors such as construction. At Extra Workforce, we are committed to keeping our clients informed and supported as new regulations come into effect.

As a leading construction recruitment agency in Birmingham, we understand how rising workforce costs affect planning, hiring decisions, and profitability. These upcoming changes to the National Living Wage and Employer National Insurance require early preparation to ensure your business remains compliant, competitive, and financially stable.

Key Changes Coming into Effect

From 1 April 2026, the National Living Wage will increase to £12.71 per hour for workers aged 21 and over.

Alongside this, changes to Employer National Insurance contributions will further increase the cost of employing staff. Together, these adjustments will raise overall payroll expenses for businesses across all sectors, including construction.

How These Changes Will Affect Your Business

The combined increase in wages and employer contributions will have wide-ranging implications. Businesses should begin planning now to minimise disruption and protect margins.

Higher Labour and Employment Costs

Rising wage levels and Employer National Insurance contributions will directly increase payroll costs. Construction businesses, where labour is a major operational expense, will need to carefully assess how these increases affect project pricing and profitability.

Budget Reviews and Financial Forecasting

Now is the ideal time to reassess budgets and long-term financial forecasts. Identifying efficiency improvements, productivity gains, or alternative staffing models can help offset higher employment costs.

Impact on Recruitment and Hiring Strategies

Increased employment costs may influence how and when businesses hire. Many employers will explore flexible workforce solutions such as temporary labour, outsourced services, or short-term contracts to manage expenses more effectively.

With labour costs expected to rise by around 10 percent, securing the right workers becomes even more important. Partnering with a reliable provider of construction recruitment in Birmingham helps ensure you receive skilled, productive workers who deliver value for money.

Employee Morale and Retention

Higher wages can have a positive impact on employee satisfaction and retention. Businesses can use this opportunity to strengthen engagement, improve loyalty, and reinforce their commitment to workforce wellbeing and financial security.

Pricing and Contract Adjustments

To protect margins, businesses may need to review pricing structures and contract terms. Any adjustments should balance increased costs with the need to remain competitive and maintain service quality.

Compliance and Legal Responsibilities

Compliance with updated wage and National Insurance regulations is essential. Payroll systems should be reviewed and updated, and regular audits carried out to avoid penalties, disputes, or reputational damage.

The Wider Impact on Businesses and Supply Chains

It is important to recognise that these changes affect every business across all industries. If you notice cost increases from suppliers or service providers, it is likely they are facing the same wage and employment pressures.

As businesses adapt, some price increases may be unavoidable. Maintaining open communication and long-term partnerships across supply chains will be essential to navigating these changes successfully and sustainably.

How Extra Workforce Can Support You

As an experienced construction recruitment agency in Birmingham, Extra Workforce is well positioned to help businesses adapt to these changes with confidence.

We support our clients through:

Financial Planning Support

Helping you manage increased labour costs while ensuring you continue to secure high-quality workers.

Workforce Optimisation

Reviewing workforce structures to identify efficiencies, flexible staffing options, and cost-effective solutions.

Compliance Guidance

Supporting your business in meeting wage and Employer National Insurance requirements while reducing administrative burden.

Talent Attraction and Retention

Advising on competitive pay structures and workforce strategies that help attract and retain skilled construction professionals.

Next Steps for Your Business

Proactive planning is the key to managing rising employment costs effectively. We recommend speaking with your dedicated consultant to assess how these changes will impact your business and to develop a tailored workforce strategy.

At Extra Workforce, our priority is to make this transition as smooth and cost-effective as possible. Through expert guidance and reliable construction recruitment in Birmingham, we help your business remain compliant, competitive, and prepared for the future.

If you would like to discuss how these changes affect your workforce planning, contact Extra Workforce today and speak with one of our specialist consultants.

 

Extra Workforce Construction Recruitment FAQs

Construction recruitment experts in Birmingham and the West Midlands

These FAQs explain how our security services support construction sites of all sizes across Birmingham.

This guide explains our services, processes and the expertise behind our team so you can make confident and informed decisions. If you have any questions that are not answered here, our support team is available around the clock. You can contact us by email or through our online form. Your security matters to us and we are here to help at every stage.

Cients FAQs

W recruit both contract and permanent workforce. If you are hiring contractors we can manage the process and help you navigate the necessary regulations.

We advertise your job ads on every major job board such as CV Library and Total Jobs etc, as well as our own website , and social media channels on LinkedIn, Facebook and Twitter.

Job seekers can create a complete professional profile at extraworkforce.uk website to get matched to the right opportunity. We have hundreds of professionals with completed profiles in our database.

Once you create your business profile, you can post you job ad at the website. A recruitment consultant will then be matched to you based on your needs and get in touch to discuss the vacancy further.

Our process begins with a CV review and a pre-screening call. Candidates who pass this stage proceed to a formal interview with our recruitment team for a detailed assessment.

We start charging fee if a candidate that has been introduced to you by us is employed within your company and starts working with you. Until then our service is completely free of charge.

We usually offer an industry leading guarantee period – so you are covered with a replacement, completely free of charge, should anything go wrong with our candidates.

Candidate FAQs

At Extra Workforce, the whole recruitment process is done remotely and there is no need for candidates to visit the office or hand documents and IDs. Current jobs are published on the website. After you apply for for a job a website, we invite you to complete your job application if we think you the are right fit for the vacancy. Once invited, you can complete your job application and get interviewed. afterwards.

Using a specialist, specific agency like Extra Workforce will mean you will have a consultant on your side, that understands what you want, matching you to the right opportunity and pushing to get you through the door. We will help you through the entire process to ensure you get the job you want.

Pay rates can vary depending on your sector, job type, contract length, and size of the recruiting business. We’ll always guarantee that you’ll be paid at least the National Minimum Wage.

Extra Workforce is a leading construction recruitment agency built on reputation and client focus. We leverage deep market connections to provide access to exclusive, unadvertised roles. We then manage your entire application and act as your advocate with the employer.

Holiday is accrued based on 12.07% of your basic pay. Contact the office to request a holiday.

Generally if we think that you are suitable for the role then we will invite to complete your job application within 3-5 working days. If we have not contacted you by then it could be that we felt you were unsuitable for the role. It's always a good idea to call us to double check.

You and most employees in the UK pay tax to contribute towards public services like the NHS, schools, roads, and emergency services. If you earn over the personal allowance set by the government, tax is automatically deducted from your wages through PAYE

Never! We only present your details to a client after we have spoken to you about the vacancy, the company and received your permission to do so.

We don’t provide transport as standard, so make sure to plan how you’ll get to and from work. Most of our roles are easy to get to by public transport, within walking distance.

If you have a complaint or concern, the first step is to contact your consultant. In case they need to escalate the issue to the right person or department to make sure it’s properly reviewed.

The types of jobs we offer can vary depending on demand, the season and your proximity to your workplace. We recruit for a mix of full-time and part-time roles, as well as temporary, fixed-term, and permanent positions.

We specialise in finding opportunities for construction professionals, such as labourers and traffic marshalls.

Using a recruitment agency offers significant advantages for job seekers. Their industry connections and resources can efficiently match your skills with suitable opportunities. Furthermore, they provide invaluable support by negotiating salaries and benefits on your behalf and guiding you through the entire search process. This partnership ultimately saves considerable time and effort.

Areas we cover in the West Midlands:

Wolverhampton

Willenhall

West Bromwich

Wednesbury

Walsall

Tipton

Sutton Coldfield

Stoke

Solihull

Soho

Smethwick

Shirley

Sandwell

Rowley Regis

Oldbury

Northfield

Harborne

Handsworth

Hall Green

Great Barr

Erdington

Edgbaston

Dudley

Coventry

Bournville

Birmingham

Bilston

Aston

Aldridge

Quinton