IWD 2025: How the part-time tax could risk women’s jobs in retail

The UK retail sector has long been a crucial employer of women, with flexible and part-time work enabling millions to balance jobs with other responsibilities.

However, changes introduced in the latest Autumn Budget threaten to upend this model.

The decision to increase employer’s National Insurance Contributions (NIC) to 15% and lower the threshold to £5,000 will make it significantly more expensive for retailers to hire part-time staff.

Retail bosses have already warned of the potential consequences. The British Retail Consortium (BRC) estimates that 10% of part-time retail jobs could be at risk, while Pets at Home chief executive Lyssa McGowan has cautioned that these changes will make hiring two part-time employees more expensive than hiring a single full-time worker.

With more than half of retail roles currently part-time, this policy shift raises urgent questions about the future of retail employment—particularly for women, who make up the majority of part-time retail workers.

And at a time when female progression to senior retail leadership is already stagnating—the number of female retail CEOs dropped by 50% year-on-year in 2023, according to Korn Ferry—there are concerns this move could deepen gender inequality across the sector.

The part-time gender split

The UK’s retail sector has long provided vital employment opportunities for women, particularly through part-time roles that offer the flexibility to balance work with other responsibilities. According to the BRC, 66.1% of part-time retail workers are women—nearly 936,000 women in part-time retail jobs.

With the government’s new employer NIC changes, these roles are now at heightened risk. The BRC has warned that up to 160,000 part-time retail jobs could be lost by 2028, with approximately 105,000 of those held by women.

“This is a serious concern,” says BRC CEO Helen Dickinson.

“Flexible, local retail jobs are incredibly important for women who need to balance work with other commitments. But if these changes significantly increase employment costs, we risk losing a vital source of income and opportunity for many women.”

The increased cost of hiring part-time employees could limit retailers’ ability to offer flexible working arrangements.

“We may see reduced flexibility, fewer shifts, and ultimately, job losses,” warns Dickinson. “That’s not in the interest of retailers, their employees, or the communities they serve.”

As Pets at Home’s McGowan has pointed out, these changes will make hiring two part-time workers more expensive than employing a single full-time worker—potentially leading to a shift away from the flexibility that has long attracted women to retail jobs.

For women who rely on part-time retail work due to childcare or other family commitments, this could mean fewer opportunities.

Currys chief people sustainability and communications offer Paula Coughlan stresses that at retailer, “we know our colleagues love the flexibility that a job in retail brings, and we love it too”.

“It’s something we’re really proud to be able to offer, and gives many of our colleagues the opportunity to work at the same time as balancing other commitments,” she says.

She says that “if part-time work becomes significantly more expensive, it’ll be much harder for us to offer this flexibility. It is vital for so many people, such as students, carers and working parents, who find our flexible hours the difference between being able to work or not.”

Coughlan also explains that “the benefits are more than financial”.

“Many people enjoy the social aspect of being part of a work community and spending time with colleagues and customers. Removing these opportunities would cause not only a financial impact, but a wellbeing one too.”

“Without part-time work, students wouldn’t even have the option to work—leading to increased youth unemployment. Many young people learn so many vital skills whilst working on the shop floor.”

Coughlan notes that retail jobs are an “important first step onto the career ladder” for many and the increasing employment costs puts this at risk.

“I hear so many success stories coming out of part-time working arrangements. For instance, one colleague has been with Currys for 31 years, moving from part-time to full-time as their children grew.

“Another returned to Currys for the flexibility we offer, becoming one of our top performers. Losing these opportunities would be a significant blow to our business and our people.

“There are thousands of colleagues at Currys—students, carers, working parents, older people returning to work—whose door to work was opened by a good part-time job. And we passionately want to keep that door open to as many as possible.”

Fewer part-time and entry level roles available

With part-time positions accounting for more than half of all retail jobs, rising employment costs could push retailers to rethink staffing structures.

Industry leaders fear that businesses may be forced to consolidate roles, reducing the number of part-time positions available.

Coughlan explains that retailers “will be forced to offer fewer part-time roles as a result of these changes—and that would be a real shame, especially with all the benefits that flexibility brings to both businesses and individuals.

“We wouldn’t be able to flex our workforce in the way we need to in order to meet customer demand. We experience both busy and quiet times in our stores, and our deployment model reflects this.

“This works for us, but it also works for our colleagues, who want and often need that flexibility.”

Next CEO Lord Wolfson previously warned that the upcoming changes will make it harder for individuals to “enter the workforce.”

He said: “My worry is that it’s going to be harder and harder for people to enter the workforce.

“It’s very difficult to see how such a big increase in the cost of entry-level work is going to result in anything other than a reduction in the number of opportunities available,” Wolfson stated.

While Dickinson notes that the impact will vary depending on how the Employment Rights Bill is implemented. “If we see the worst-case scenario, we’re looking at significant job losses, particularly for women,” she says.

“The government needs to ensure that new regulations do not add unnecessary costs that could push businesses into reducing flexibility.”

With so many retail jobs at risk, businesses face a difficult balancing act: How can they manage rising employment costs without losing the flexibility that makes retail attractive to so many women?

Keeping retail jobs attractive

At a time when women’s representation in senior retail leadership is declining—female retail CEOs halved in 2023—the loss of flexible, entry-level roles could make career progression even harder.

Coughlan says, “We’ll keep championing the benefits of flexible working and celebrating the incredible success stories at Currys”.

“It makes me proud that we are able to support our colleagues as they balance part-time work with their other commitments, from studying to caring. Together, we’re proving that flexibility and business success go hand in hand—and they really do.

“We will continue to offer flexibility that genuinely works both ways, and hope that we will be able to keep doing so,” promises Coughlan.

While retailers are working to minimise the impact, there’s no doubt that these changes pose a serious risk to one of the largest workforces of women in the UK.

The question now is whether the government will adjust its approach to prevent further job losses—or whether the industry will be left to absorb the cost.