A perfect storm of policy incoherence
Steve Loftus has a useful Critic piece on the way Labour is giving employers more and more reasons to replace humans with AI.
Labour are making it more difficult to employ people even as AI threatens jobs
The future of work is arriving faster than Westminster imagined, and Britain is sleepwalking into a jobs crisis of its own making. While artificial intelligence and humanoid robotics advance rapidly, the Government has chosen this precise moment to make employing humans more expensive than ever before. It’s a policy collision that threatens to accelerate job displacement just when the economy needs breathing room to adapt…
From April 2025, employer National Insurance contributions have jumped from 13.8 per cent to 15 per cent, while the threshold from which employers pay NICs for each employee has dropped from £9,100 to £5,000 per year. This means employers will pay an additional £900 for each employee on median average earnings. Simultaneously, the national living wage has risen by 4 per cent in real terms for 2025, while the Employment Rights Bill promises to further increase the cost and complexity of hiring. The message to British businesses could hardly be clearer: humans are expensive, risky, and getting more so by the month.
The whole piece goes over familiar ground but is well worth reading, because the situation is moving so rapidly and our political class isn’t.
The solutions are neither simple nor painless, but they exist. Instead, we’re witnessing a perfect storm of policy incoherence. At the moment when technological change demands maximum flexibility and support for human employment, the Government has chosen to make hiring more expensive, firing more difficult, and automation more attractive. The result will be a jobs crisis that seems to have appeared overnight but was actually telegraphed years in advance.
Source: https://akhaart.blogspot.com/2025/06/a-perfect-storm-of-policy-incoherence.html
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