NHBF: Budget Changes To Cost Hair & Beauty Sector £139m

New report looks at economic impact of the Autumn Budget on hair and beauty businesses

by AMANDA | INFORM

Research by Pragmatix Advisory for the NHBF focuses on seven key measures – changes to the National Minimum Wage, Apprenticeship Minimum Wage rates, employer National Insurance contributions (NICs), Employment Allowance, business rates and business rates relief. The £139m impact is based on official government statistics and responses to the NHBF January 2025 State of the Industry survey.

With staff costs typically around 60 per cent – higher than the likes of hospitality where staff costs account for approximately 28 per cent – the Budget changes will hit hair and beauty particularly hard. According to the report, labour costs are expected to rise by four per cent, equivalent to £100m across the sector, driven by the rise in the National Minimum Wage, Apprentice Minimum Wage, and the changes in the thresholds and rates for employer NICs.

Overall tax revenue is expected to decrease by four per cent, or £44m across the sector, net of Employment Allowance. VAT paid is estimated to fall by 0.5 per cent, equivalent to £2.5 million. Based on responses to its recent State of the Industry survey, one in four salons (19per cent – approximately 9,370) plan to shift to self-employed models, likely to avoid the increased costs linked to traditional employment structures. For ‘micro’ businesses with fewer than four employees, the Budget is likely to add £1,130 in costs, while ‘mini’ businesses with 10 employees can expect to face £10,370 in additional costs per year.

Profits are projected to drop by 15 per cent across the sector, driven by rising labour costs and reduced consumer demand. Turnover is anticipated to slide by £20m.

The survey illustrated that seven in 10 businesses plan to increase prices, while 45 per cent will cut staff hours. Additionally, 45 per cent said they will trim the number of employees, with an average cut of 2.7 full-time equivalent staff.

“Our sector, which employs predominantly women and young people, is facing unprecedented pressure to either raise prices significantly or fundamentally change business models – with serious implications for jobs, training, and high street vitality,” said Caroline Larissey, chief executive of the NHBF. The organisation has written to the Chancellor ahead of the fiscal statement on 26 March. This letter asks for an urgent review of VAT; support for apprenticeships, including £3,000+ incentives per employee to cover training costs; business rates reform; more flexibility from energy suppliers to tackle high utility costs and enhanced HMRC resources for both enforcement and sector-specific advice to ensure fair competition.  

Fashion Trade Union Report Reveals Low Pay and Job Insecurity

Session stylists among those sharing experiences of unpaid overtime, late payments and toxic working environments

by AMANDA | INFORM

Just 14 per cent of fashion creatives are paid on time for the work they do and eight in 10 feel pressured to work for free. These are some of the damning findings in Fashion UK’s State of the Sector report, based on responses from more than 500 fashion creatives working in the UK, including hair stylists, make-up artists, nail technicians, fashion and accessories designers, photographers, fashion stylists, tailors and their assistants.

Fashion UK is the UK’s first trade union branch for fashion creatives – part of Bectu, the long-established union representing staff, contract and freelance workers in the media and entertainment industries – with vocal supporters including legendary session stylist Sam McKnight. While the British Fashion Council estimates that the fashion industry contributes £37 billion to the UK economy, the report illustrates the insecure working conditions of many fashion creatives, showcasing a story low – or no – pay and toxic working environments.

Fashion creatives from Black and minoritised ethnic backgrounds were more likely to be in low-paid work and to have experienced workplace discrimination than their white counterparts. More than a third are forced to supplement their income with non-fashion work.

Responses from 525 fashion creatives spoke about the inherent insecurity in the industry, reporting frequent job cancellations and late payments. Nearly a third (31 per cent) of fashion creatives said they don’t see themselves in the industry in five years’ time.

The key findings included:
• Just one in 10 fashion creatives (10 per cent) say they feel secure in their job.
• Only 14 per cent are paid on time for the work they do.
• Half (51 per cent) of fashion creatives are earning under £30,000 a year before tax from their work in the industry.
• More than seven in 10 have struggled financially (72 per cent) in the past year
• Eight in 10 (79 per cent) have felt pressured to work for free.
• And 83 per cent say that behaviours that would be considered toxic and inappropriate in public life are often tolerated in the fashion industry.

Fashion UK is now working on a two-part Guide to Good Practice, aimed at employers and creatives themselves, to help standardise hiring practices, terms and conditions in the industry. It will also help inform creatives about how to check their contract and terms, and advise on how to chase payments, among addressing other issues.

“It is very clear that fashion has a culture problem,” said head of Bectu, Philippa Childs. “From workers facing psychological abuse and unreasonable demands, to excessive hours and no or little pay, no one should have to put up with these conditions to ‘make it’ in an industry.”

This Is The 2025 Schwarzkopf Professional Young Artistic Team

Six fresh faces revealed for year-long programme

by AMANDA | INFORM

The new Schwarzkopf Professional Young Artistic Team for 2025 is here, celebrating up-and-coming talent from across the UK and Ireland.

The latest recruits are:

Lucy Hulme (Billi Currie, Marylebone, London)
Joseph McCarthy (Hooker & Young, Ponteland)
Alex Trippier (Claxton Hair, Rawtenstall)
Kate Olivia (HEX, Manchester)
Becky Yardley (Base Hairdressing, Warrington)
Eilidh Ashlyn (Complete Salon, Glasgow)

During the year-long programme, the team will be mentored by UK ambassador, Suzie McGill, to develop skills, explore new creative possibilities and gain industry experience at shoots, events and more. 

The selection process took place at Stā Studios, where finalists were asked to cut and style their chosen models hair using Schwarzkopf Professional products, with each model having a minimum of five inches cut from their hair. The finalists presented their models to a panel of judges, sharing their mood board, inspirations, techniques and vision.