As the summer season approaches, holiday parks across the country are preparing for the annual surge in occupancy — and with it, the urgent need to boost staffing levels. But this year, a familiar challenge has been compounded by a triple blow from the Government:
- An increase in the National Minimum Wage
- A higher percentage of Employer National Insurance contributions
- A reduced threshold for secondary Employer NI contributions
This “triple whammy” comes at the worst possible time for many operators. Parks are scaling up resources to deliver the guest experience that keeps them coming back, but now face significantly higher employment costs — not just for seasonal staff, but also for their already lean permanent teams.
Let’s break this down:
- Previously, for a seasonal employee earning £10,000 annually, the employer NI contribution (13.8%) was applied to just £900, costing £124.
- As of April, employers now pay 15% NI on £5,000, which equals £750 — an increase of £626.
- Add to this the National Minimum Wage increase to £12.21, and that same employee now earns £10,000 for hours that would have cost just £9,369 last year — a £630 pay rise.
So, for one seasonal worker earning £10,000, you're now looking at a total additional cost of £1,256 per year. Multiply that by 10 staff members and that’s £12,560 extra annually. A team of 20? Now you’re £25,000+ deeper into your budget.
The Dilemma Facing Parks Today
With margins already stretched by rising utility bills and supplier costs, park owners now face tough choices:
- Hire fewer staff (and risk a decline in guest experience)
- Cut hours to keep employees below the NI threshold
- Raise prices to recover the increased costs
None of these are attractive options — especially when trying to maintain quality in a competitive market.
But There’s a Silver Lining… For Small Parks
Let’s talk about Employment Allowance. Historically, employers with annual NI liabilities under a certain threshold could claim up to £5,000 in relief.
Here’s the good news:
From April, the Employment Allowance has increased to £10,500.
So if your park’s annual employer NI bill is under £10,500, even with the increased wage and NI contributions, you may actually save money.
This could make a significant difference for smaller operators, potentially covering the cost of that much-needed seasonal team member.
And claiming it? It’s easy — most payroll software has the functionality built-in. So make sure you're claiming it!
The financial pressures are real, and staffing decisions this year are more complex than ever. But don’t overlook the tools and reliefs available to you. Claiming Employment Allowance could tip the balance — enabling you to deliver the service your guests expect without pushing your budget past breaking point.
When every penny counts, grab that chink of light at the end of the tunnel with both hands.
If you would like to discuss the costs of hiring new staff, enquire about our holiday park customer service training to make sure you’re getting the best out of the staff you have, or chat about any other staffing related enquiry, please contact us today!