The Impact of the UK Minimum Wage Increase: Industry Voices Weigh In

The upcoming increase in the UK’s minimum wage has sparked widespread discussion in the cleaning sector, where labour costs make up a significant portion of overall expenses. While some view the changes as a step toward fairer pay, others have concerns about affordability, wage structures, and the competitive landscape.

Beyond the wage increase itself, employer National Insurance (NI) contributions add another layer of financial pressure, forcing businesses to make tough decisions regarding pricing, hiring, and staff retention.

To gain real-world insight into how these changes will affect the cleaning industry, I spoke with three industry professionals:

• Sharon Jackson-Lewis, Owner of Sparkle Cleaning Stockport
• Lee Keet, Managing Director of Vapor Clean
• Nick Stentiford, Owner of Signature Cleans

Their perspectives highlight the challenges, opportunities, and hard decisions cleaning businesses now face.

General Impact: Necessary Change or Added Pressure?

For some businesses, the minimum wage increase won’t bring immediate financial strain—both Sparkle Cleaning Stockport and Vapor Clean already pay above the National Minimum Wage (NMW). Signature Cleans, a newer company, also operates above the threshold, meaning the changes won’t affect Nick Stentiford directly—at least not yet.

“For my business right now, not much impact due to my two employees already being paid ￡13 per hour. As we grow, we will know nothing else, so it will be the norm. But in business groups I’m in, this is causing much stress for established businesses with numerous staff.” – Nick Stentiford

For Lee Keet, the increase is a necessity, allowing staff to keep up with rising costs.

“The minimum wage increase is the part that customers understand you have to pass on, and it needs to happen to allow staff to simply keep up with inflation and the cost-of-living crisis.”

However, Nick takes a different stance based on his experience in hospitality, where regular wage increases created a constant financial strain.

“We all understand we are living in a cost-of-living crisis, but putting minimum wage up doesn’t help. It creates a domino effect—businesses have to increase their prices, so inflation doesn’t change, and minimum-wage workers (even though they think they are better off) actually end up worse off.”

Sharon highlights another consequence: pay compression within a company.

“Having to pay NMW to a new starter—who does not yet know the business and will need to be trained—could mean they are earning the same as the person training them. Shouldn’t a trainer expect a higher rate? And does knowledge cost?”

This raises an important point—how will businesses maintain wage differentials to reward experience and responsibility?

Employer NI & Business Costs: The Real Burden?

While businesses can plan for wage increases, employer National Insurance (NI) contributions are harder to absorb, as they don’t come with the same level of public understanding.

“These increases are the ones that are going to hurt businesses the most. We are expecting an 8-10% increase in our monthly wage bill.” – Lee Keet

“This one could actually be the killer of a lot of small businesses. Time will tell.” – Nick Stentiford

The inability to pass these costs onto clients is what makes NI particularly difficult for many businesses.

“Our customers are already nervous about the increases they are going to receive on their own payroll, so we will not be able to pass this on. We are already seeing a slowdown in new customers for commercial contract cleaning.” – Lee Keet

Would a reduction in employer NI contributions help? The consensus is that while it would be beneficial, no one is expecting it to happen.

“That would probably be a good idea, but they won’t. This government seems hellbent on strangling small businesses in many ways.” – Nick Stentiford

“The government simply have to be mindful of all the increases. Their actions are forcing businesses to make tough decisions as they simply can't keep increasing prices. It’s very anti-business.” – Lee Keet

Employees & Retention: More Than Just a Paycheque

Will higher wages improve staff retention? Not necessarily, say all three business leaders.

“Money is always a motivator, no matter what sector you are working in. But I’m not sure if it will improve employee retention within the cleaning industry. I think you either love or hate cleaning—it’s very much like marmite.” – Sharon Jackson-Lewis

For Nick Stentiford, keeping employees engaged goes beyond pay.

“I genuinely hope so, but I still feel it isn’t always about money—it’s about communication, praise, and being there for the team.”

Another concern is wage compression—where higher starting wages reduce the gap between roles, making promotions less appealing.

“Definitely. When the starting wage jumps up but higher roles don’t see the same bump, it removes the incentive to climb the ladder.” – Lee Keet

Industry & Competitive Landscape: A Growing Divide

One of the biggest concerns is how wage increases will affect competition between large and small cleaning companies.

“The larger cleaning companies mainly advertise at the strict NMW, whereas we pay above it—but sometimes we still struggle to fill vacancies.” – Sharon Jackson-Lewis

Lee believes mid-sized businesses will struggle the most.

“There’s a horrible ‘no man’s land’ in the cleaning industry. Large firms can absorb cost increases, and small one-man-band businesses can undercut the market due to lower overheads. But mid-sized businesses don’t have the same flexibility, so they will either have to hike prices, cut costs, or risk getting pushed out.”

However, Nick sees the wage increase as an opportunity for businesses that focus on quality.

“I’m already seeing businesses where their current supplier has overpromised and underdelivered. The wage increase will exacerbate this, but my focus in conversations is that hygiene shouldn’t come with a cost worry—it’s about keeping their staff and pupils healthy.”

Handling Price Pushback: A Delicate Conversation

With costs rising, businesses must pass on some of these expenses to clients—but it’s not an easy sell.

“Yes, we have had several quotes declined already in 2025 on price. We offer to discuss in more detail if they provide their budget expectations and then work with them to amend our proposed schedule.” – Sharon Jackson-Lewis

For Lee, transparency is key in managing price discussions.

“No one likes price increases. The key is transparency—explaining that better wages mean better service, lower staff turnover, and ultimately, better results for them.”

However, he acknowledges that some clients will simply be unable to afford the increases.

“There will absolutely be a portion of customers that can’t afford the increases. They will either go for smaller, cheaper companies or look to reduce hours to cut costs.”

Final Thoughts

The cleaning industry is facing a complex and difficult balancing act. While some businesses are prepared for the minimum wage increase, employer NI contributions, pricing pressure, and wage compression present significant challenges.

What’s clear is that businesses must find a way to adapt - whether through pricing strategies, operational efficiency, or focusing on long-term client relationships.

The cleaning industry is changing - how businesses respond will define their success in the years ahead.