Fears mount over pension rumours

SPECULATION surrounding potential increases to employer pension contributions in the forthcoming Budget has sent UK firms into turmoil, with some admitting it could threaten their financial survival.

- MAISIE GRICE

Research from consultancy Barnett Waddingham reveals that almost 20% of companies worry they could face insolvency if mandatory rises to employer pension contributions were implemented,.

Firms have already been compelled to bear extra financial pressures following measures in Rachel Reeves’ inaugural budget last year, with the national living wage rising to £12.21 from April.

National insurance contribution rates also climbed from 13.8% to 15%.

More than 30% of companies acknowledged they would halt recruitment entirely or cut workforce numbers to manage the potential cost increases, adding further strain to an already stretched and troubled jobs market.