Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what steps his Department is taking to support (a) retailers and (b) hospitality with the potential impact of changes to (i) National Insurance Contributions and (ii) National Minimum Wage on food prices.

ONS data for May 2025 shows CPI food price inflation was 4.4%, up from 3.4% in April 2025. This is due to range of factors, including the strength in some commodity prices, this year’s exceptionally dry spring and geopolitical concerns etc.

We have protected the small businesses from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500. This means that 865,000 employers will pay no employer NICs at all this year, and more than half of employers will see no change or will gain overall from the changes to employer NICs that came into effect from 6 April 2025.

The National Minimum Wage and National Living Wage is set following a recommendation from the Low Pay Commission. In making that recommendation the LPC is required to take into account the effects of that rate on business, competitiveness the labour market and the wider economy. By seeking expert and independent advice from the Low Pay Commission, we are able to ensure that the right balance is struck between the needs of workers, the affordability for businesses and the impact on the economy

As part of the plan for change, the Government is developing a food strategy to transform the food system and make good, healthy food more accessible and affordable and to realise the potential within the food sector itself. We are meeting retail and hospitality representatives regularly as well as others in the food and drink industry, civil society, and citizens to work up shared goals and priorities.