Cost of Employment in 2026: What Seasonal Businesses Need to Know
Employment costs rise again in April 2026, and for seasonal destinations like Lynton & Lynmouth the impact is sharp. Minimum wages go up, employer NIC stays high, and even short season contracts now carry a much bigger all-in cost. This guide breaks the numbers down in plain English, and shows what businesses need to do to stay ahead.
The 2026 Wage Picture
From April 2026:
21+ National Living Wage rises to £12.71/hr
18–20 National Minimum Wage rises to £10.85/hr
Employer NIC remains at 15% above the small allowance
Auto-enrolment pensions remain at 3% employer contribution
Holiday entitlement stays at 5.6 weeks (≈ 12.07% uplift on wages)
The combined effect is simple: every employee now costs noticeably more, and seasonal employers feel it most.
Annual Employment Cost Table (2026)
These figures show the real annual cost of hiring staff at 25, 35 and 40 hours/week, including holiday, NIC and pension.
| HOURS PER WEEK |
AGE BAND |
BASE WAGE (52 WEEKS) |
HOLIDAY (12.07%) |
NIC | PENSION | TOTAL COST (2026) |
|---|---|---|---|---|---|---|
| 25 hrs | 21+ | £16,523 | £1,994 | £1,324 | £708 | £20,549 |
| 35 hrs | 21+ | £23,132 | £2,792 | £2,036 | £1,232 | £29,192 |
| 40 hrs | 21+ | £26,437 | £3,191 | £2,425 | £1,514 | £33,567 |
| 25 hrs | 18–20 | £14,105 | £1,702 | £885 | £546 | £17,238 |
| 35 hrs | 18–20 | £19,747 | £2,383 | £1,525 | £946 | £24,601 |
Seasonal Employment Cost Table (L&L model – 730 hrs)
Most Lynton & Lynmouth businesses run a May–October season with a clear split between busy and quieter weeks.
A estimated, but hopefully realistic local pattern is:
Shoulder season: 18 weeks × 25 hours
Peak season: 8 weeks × 35 hours
Total: 730 seasonal hours
Using that model, here’s the true cost of hiring one seasonal employee in 2026:
| AGE BAND |
HOURLY RATE |
SHOULDER WEEKS |
SHOULDER HOURS/WK |
PEAK WEEKS |
PEAK HOURS/WK |
EST. TOTAL COST |
|---|---|---|---|---|---|---|
| 21+ | £11.44 | 10 | 25 | 12 | 35 | Calculated |
| 18–20 | £8.60 | 10 | 25 | 12 | 35 | Calculated |
For many businesses, this is the biggest eye-opener: one seasonal adult employee now costs around £11k for the season.
The Hidden Extras
The tables show the legal minimum costs, but real-world seasonal employment includes more:
Recruitment and onboarding
Training time (H&S, allergens, coffee/refreshments, systems)
Uniform and equipment
Staff meals or drinks
Bank holiday uplifts (if paid)
- Overtime (if paid)
Most employers face at least a few of these, and they quietly raise the true seasonal cost.
What This Means for Prices
Businesses often panic at the idea of raising prices, but the maths is more forgiving than it looks. To cover the cost of one seasonal employee, a typical business needs an extra £61/day across the May–October season.
To make that easier, here are the simple models.
Required Extra Revenue per Day (to cover ONE seasonal worker)
Based on seasonal 21+ cost: £11,130
Season length used: 182 days (May–Oct)
| Seasonal Staff | Total Seasonal Cost | Extra Revenue Needed per Day |
|---|---|---|
| 1 employee | £11,130 | £61 per day |
| 2 employees | £22,260 | £122 per day |
| 3 employees | £33,390 | £183 per day |
Required Price Rise per Customer / per Item
A) Per Customer (to cover £61 per day)
| Daily Footfall | Extra Needed per Customer |
|---|---|
| 50 customers | £1.22 |
| 75 customers | £0.82 |
| 100 customers | £0.61 |
| 150 customers | £0.41 |
| 200 customers | £0.31 |
B) Per Item (to cover £61 per day)
| Items Sold/Day | Increase Needed per Item |
|---|---|
| 100 items | £0.61 |
| 150 items | £0.41 |
| 200 items | £0.31 |
| 300 items | £0.20 |
The takeaway:
You don’t need to add £3 to everything — you need an average uplift of 40p–£1.20 depending on footfall.
Raise the right products, not all products.
The Five Realistic Ways Businesses Will Adapt
Across Lynton & Lynmouth, these are the levers businesses will actually pull in 2026:
1. Selective price rises, not blanket hikes
Lift the margin-friendly items: premium coffees, cakes, cocktails, premium gifts, specials, add-ons, swaps, experiences.
2. Trim the weakest opening hours
Pull labour out of dead time, especially in shoulder months or slow weather days. It should be noted that opening during these ‘lulls’ often costs more in wages and utilities than it brings in, turning the day into a net loss.
3. Reduce headcount per shift
Fewer people, better trained, more multi-skilled. This is already happening across the sector.
4. Shorten the shoulder season
Later start, earlier finish, or lighter rotas in May, June, September and October. Those early-season and late-season weeks often run at a loss, with overheads outpacing revenue. Shortening them helps stop the year starting in the red and protects the profit you rely on later.
5. Increase spend-per-head
Bundles, deluxe versions, seasonal specials and intelligent upsells can sometimes lift revenue without needing extra customers.
Small, precise changes — not dramatic ones — keep the doors open, yet some harder decisions are unavoidable if you want to stop the business haemorrhaging money.
What To Do Next
The smartest businesses will:
Review their rota patterns now
Map their seasonal staffing to the 2026 costs
Decide where to increase prices and where to improve margins
Lock in a strategy before staffing-up or recruitment begins
Seasonal employment is getting more expensive, but with clear numbers and a controlled plan, the costs can be managed.