Labour’s first budget has sparked concern among many businesses, particularly around rising employment costs and increased regulatory obligations. Key changes such as higher employer National Insurance (NI) contributions and enhanced worker rights from day one—covering sick pay, unfair dismissal protection, and parental leave—are making permanent hiring decisions more expensive and complex.
We understand why some companies are pausing their permanent recruitment plans. However, it’s vital to remember that while you may delay hiring, the work doesn’t stop. Reporting deadlines, compliance requirements, and transformation projects remain fixed. Without the right level of support, existing employees often bear the brunt of increased workloads, leading to stress, burnout, and the risk of key team members seeking opportunities elsewhere.
Interim recruitment offers a strategic solution, helping your business maintain momentum, protect your people, and avoid longer-term disruption—without the financial and regulatory burden of permanent hires.
1. Flexibility Amid Rising Employment Costs
With the budget increasing employer NI contributions from 13.8% to 15% and raising the National Living Wage, hiring permanent staff has become significantly more costly. Interim hires offer a cost-effective solution because you only pay for the time and expertise you need, without long-term commitments such as pensions, notice periods, or benefits.
Interim contracts provide financial flexibility, especially for short-term projects or during periods of uncertainty, enabling businesses to balance their staffing needs against higher operating costs.
2. Navigating Enhanced Day-One Worker Rights
Under the new budget, enhanced worker rights from day one include sick pay without a waiting period, protection against unfair dismissal, and automatic parental leave eligibility. While these reforms aim to strengthen employee rights, they can add administrative and legal complexities for permanent hires.
Interim professionals fall outside many of these permanent employment frameworks, making them an agile resource to fill skill gaps, manage projects, or cover absences without the added regulatory requirements. This flexibility helps businesses stay compliant while keeping headcount adaptable.
3. Preventing Burnout and Supporting Retention
Holding off on permanent hires can leave existing teams stretched too thin, particularly in specialist areas like finance and accountancy, where reporting deadlines, audits, and system implementations can’t be postponed.
When key people feel unsupported, engagement drops, and turnover rises. Interim professionals can ease this burden by providing immediate support, allowing your core team to focus on their priorities without the fear of burnout. This not only maintains productivity but also signals to your teams that you’re investing in their well-being, which supports retention and protects your employer brand.
4. Filling Critical Skills Gaps with Specialist Expertise
Labour’s budget also reinforces new compliance and reporting obligations, which can increase the demand for skilled professionals who understand regulatory frameworks. Interim hires—especially those with experience in multiple organisations—often bring the niche expertise needed to help businesses meet these new requirements quickly.
Whether you need support for a system migration, an audit, or a process overhaul, interim professionals can be onboarded rapidly and deliver results without lengthy training or acclimatisation.
5. Maintaining Progress While Remaining Agile
Interim recruitment allows your business to stay agile by bridging the gap between current demands and future plans. You can continue delivering key projects and services without locking yourself into permanent commitments during uncertain times.
Additionally, interim hires give you flexibility to reassess and pivot your approach as the economic landscape evolves. Some interim professionals may even transition into permanent roles if your outlook improves, providing valuable continuity and stability.
Conclusion
Labour’s first budget introduces higher employer costs and strengthened worker protections, making permanent recruitment more complex and expensive for many businesses. However, while these challenges may justify caution around permanent hiring, your business cannot afford to stand still. Projects must continue, and your teams need support to prevent burnout and retain your best people.
Interim recruitment offers a solution that balances flexibility with productivity—bringing in high-calibre professionals who can hit the ground running without long-term financial and regulatory commitments.
By partnering with a specialist recruitment agency, you can access expert interim talent that meets your immediate needs, keeps your business on track, and supports your long-term strategy while navigating an evolving employment landscape. If the budget has put your hiring plans on pause, consider interim solutions to maintain momentum and protect your most valuable resource—your people.