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[show]As April approaches so do two of the biggest budget changes, with employer costs expected to increase the future of security guards comes into question. Find out what to expect below.
One of the biggest changes announced in the Autumn budget was employer’s National Insurance contributions being raised to 15%, which alongside the minimum wage increase could see the cost of security guards going up. So, what does the future hold for those utilising this service?
The Current Climate for Security Guards
Following a Government survey in 2022 on the security guard sector, it indicated that most security guards work on the National Minimum Wage which is currently £11.44 for those 21-years-old and over.
Post-pandemic there has been a sustained difficulty recruiting and retaining security guards, with the Security Industry Authority recognising that there has been a deficit of over 60,000 security officers in the UK.
Reasonings such as low wage, high levels of verbal and physical violence, lack of career pathways and the vetting requirements were all labelled as barriers within the Government survey for the security guard sector.
Additionally, for security guarding companies, the survey found that they faced increased costs with recruitment and deployment of security guards. This is due to the multiple costs that they are required to cover such as higher insurance premiums, uniform costs, basic training, vetting and equipment costs.
Essentially the security guard sector is showing signs of struggle, yet the requirement for security is ever-increasing across all industries and businesses within the UK.
The Autumn Budget Announcement
With the security guard sector in an already strained situation, the Autumn Budget presented in October announced some of the biggest changes in many years aimed to benefit the country’s future.
Labour continued their promise to keep income tax and National Insurance (NI) unchanged for employees, however, with this security for employees brought uncertainty for businesses.
There were two key points that were announced in the Budget that are set to impact all businesses in April next year.
Increased National Insurance Contributions and Lowered Salary Threshold
As much as NI will not be raised for employees, it will be increased for employers. The amount paid will increase from 13.8% to 15% and the salary threshold has been reduced to £5,000 from £9,100 meaning that many businesses will contribute more NI and sooner.
The move was made by the Government to help raise an additional £25bn a year, however, there has been large debate since on the impact this will have on businesses, especially mid-sized ones.
To protect smaller businesses, the employment allowance will increase from £5,000 to £10,500 to reduce the NI liability they are faced with.
A Rise in Minimum Wage
The other announcement was more expected as the Government shared that there will be a rise in the legal minimum wage for over-21s from £11.44 to £12.21 per hour from April.
Although a rise was expected as there is one announced nearly every budget due to inflation, this will still impact many businesses that have a high-number of employees working on minimum wage.
The wage increase is also set for those between 18 to 20-years old, going from £8.60 to £10, as part of a long-term plan to move towards a “single adult rate”.
The Impact of the Budget on Security Guard Companies and You
The Autumn Budget is set to impact all businesses with large financial implications and this includes the security guard sector.
Alongside the struggles the sector is faced with, there is likely to be further impacts on the industry following this change in April. There are three potential impacts that security guard companies and businesses utilising them could face:
Increased Costs for Businesses
The increase in employer NI contributions and minimum wage will increase the costs for security guard companies to employ their staff.
However, with this increased cost for security guard companies, so is the likelihood that companies utilising these services will also face increased costs from this also.
Suppliers will need to maintain their profit margin and cover the necessary costs linked to the business and one of the main ways to gain this back is to increase costs to customers.
Fewer Security Guards
With there already being a deficit in security guards across the UK, increased costs for security guard companies could lead to a further deficit.
Following the Budget changes, companies may be forced to salary sacrifice and reduce employee numbers or slow recruitment due to the expense as they work to manage the additional costs presented to them.
This potential decrease will mean there are fewer guards for companies to utilise themselves and this could place higher security risks for them, in turn pushing them to consider other options such as Mobile CCTV or perimeter fencing.
Lowered Availability
In addition to the current deficit, the increased financial implications could lead to slower recruitment or redundancies that will create an even further deficit.
Due to this deficit, holiday allowance and working hour limitations, there is likely to be lower availability of security guards for companies to deploy which will have a knock-on impact for customer’s security.
With security guards often working 12-hour shifts, their alternative working patterns already reduce their availability and this cannot be changed based on fewer staff.
For customers facing this impact, finding a stable security system will be vital in protecting themselves.
How You Can Stay Secure Post Budget
Until April, the country is filled with uncertainty, particularly for sectors already struggling, such as the security guard industry.
However, security cannot wait and it is important to be prepared for the future now.
There are multiple benefits to security guards, but as a lone source of protection they can provide uncertainty and present human errors that place you at risk. Therefore, utilising Mobile CCTV as your main source of security or coinciding it with security guards ensures a fully-managed service that completely protects you.
Comparing Mobile CCTV to guards on benefits alone, Mobile CCTV is considered the better source of security and a more stable option for the future, which is needed with the current climate in particular.
The additional benefits available with WCCTV and our products such as the Solar CCTV Towers help boost your security both as an individual source of security or combined with other security systems.
For businesses utilising security solutions, it is time to consider your options for the future, making sure you have the right service for you. With price increases and the deficit likely to impact most businesses, you need to keep your security central and select the solution best suited to you.
Mobile CCTV: Security for the Future
Staying secure relies on a stable security system that can maintain the challenges, obstacles and uncertainty that the future brings.
With manned guarding facing a staff deficit, multiple recruitment and retention challenges and financial increases, the impact on those utilising these services are unknown.
Mobile CCTV provides fully-managed security that offers the extra reassurance that security guards cannot always guarantee. Take the step towards stronger security by getting in contact with us today!
Daniel Del Soldato
Marketing Director
Daniel has been at Wireless CCTV over 10 years and has accumulated a vast wealth of knowledge when it comes to CCTV products and the way they operate. In his spare time Daniel likes to listen to music, watch football and spend quality time with his family.
