With the fruit picking season on its way, many agricultural and horticultural businesses will be delighted that the seasonal worker scheme has been extended for 2025.
In October last year, the government announced 45,000 temporary visas will be issued this year, with 43,000 allocated for horticulture and 2,000 for poultry workers. But as of 1 April 2025, the cost of employing seasonal labour increased in line with rises to the National Living Wage for over 21s and the National Minimum Wage for 18–20-year-olds.
Five days later, on 6 April, employer National Insurance contributions rose from 13.8% to 15%, marking another hike for UK agricultural and horticultural businesses. Under the Global Licensing Authority of Britain (GLAA) – the body that sets the laws for seasonal agricultural workers – those employed on temporary visas are subject to the same costs as permanent UK workers.
This means both the increase in minimum wage and NI apply to any temporary, overseas workers. Ian Parker, agricultural tax expert and partner at Whitley Stimpson, said the impact of rising costs will be primarily felt by producers.
To mitigate the hikes, he urged businesses to review their temporary staffing requirements and make efficiencies where needed. Ian said: “It is great news that temporary workers can continue coming to the UK. They play a vital role in harvesting produce from farms across the country and without access to this workforce, the horticultural industry would be on its knees.
But the increased costs of employing temporary labour will hit the industry, which has limited opportunities to pass them on if they’re locked into contracts.
“So, ahead of the fruit and veg harvest, businesses really need to carry out a comprehensive review of their labour needs for the coming season and ensure they stick to those plans. “Recognising and exploiting efficiencies is one of the most effective ways to manage rising costs and protect margins, so we would urge businesses to do this as soon as possible.”
Ian added that for advice on finding efficiencies, cost management, cash flow management, or tax planning, speak to an expert. He said: “As a business owner, you’re often expected to be an expert in everything. But accessing support when it comes to financial management can have a huge impact on a business, both in terms of cost savings and long-term sustainability, so don’t be afraid to ask for help.”
For advice on a seasonal labour or any other aspect of financial planning, contact Ian Parker on (01295) 270200 or email ianp@whitleystimpson.co.uk