From April, employers can expect to pay 60% more in National Insurance in the 2025-26 tax year due to NIC rises announced at the Budget.

In 2024 an employer paid £1,617 for each full time employee on minimum wage, this will increase to £2,583 from 1 April, reveals analysis by the Centre for Policy Studies (CPS).

One low wage employee will now cost £24,806 per year.

Research from the CPS has labelled the rises ‘one of the most damaging’ tax increases in British history, with businesses already halting their hiring plans and putting off further investments.

Robert Colvile, Centre for Policy Studies director, said: ‘Labour claims to understand the importance of growth and to have made it a priority.