What Budget 2025 Means for Pest Control Businesses

 

The Autumn Budget 2025 introduces several changes that will directly influence how pest control companies operate, plan and manage their workforce. While the Budget aims to support growth and raise wages for lower paid workers, it also increases the cost base for many service-driven sectors, including pest control. For businesses across the industry, the focus now shifts to managing rising wage pressures, maintaining margins and making long term workforce decisions.

 

Key financial changes affecting pest control companies

From April 2026, the National Living Wage for workers aged 21 and over increases by 4.1 percent to £12.71 per hour. The rate for 18 to 20 year olds increases to £10.85 per hour. These changes will raise labour costs for pest control employers, particularly those who employ trainees, entry level staff or support workers.

The Budget also confirms future reforms to salary sacrifice pension schemes. From 2029, contributions above £2,000 per year will no longer be exempt from National Insurance. Although this primarily affects higher earners, businesses that use salary sacrifice as part of their employee benefits model will need to review long term cost planning.

Income tax and National Insurance thresholds remain frozen. As wages increase, more employees may be drawn into higher tax brackets, which may prompt pressure for pay adjustments over time.

 

Operational impacts for pest control businesses

Labour intensive services will become more expensive to deliver, so businesses may need to review pricing models, service structures and operational efficiency. Clear communication with customers will be important, particularly where adjustments to service charges are required to remain sustainable.

Two announcements will be welcomed by pest control operators. The fuel duty freeze has been extended to at least September 2026, allowing companies to plan fuel expenditure with greater confidence. Corporation tax has also been frozen, which provides stability for firms looking to invest in vans, equipment or expansion over the next two years.

Apprenticeships and structured training programmes are likely to become increasingly valuable as a long term workforce solution. This reinforces the importance of shaping the new qualification framework correctly so that future technicians enter the industry with strong foundations and employers can recruit with confidence.

The NPTA Careers Hub also becomes even more important in this landscape. With rising wage expectations and increased visibility of skilled trades, the industry will need a reliable pipeline of trained, informed and career-ready recruits. The Careers Hub provides a route for young people, career changers and veterans to explore the profession and understand the pathways available.

The government is also asking the Food Standards Agency (FSA) to streamline food standards and hygiene regulation for large and regulation-compliant supermarkets. 

The FSA will develop a consistent, national approach in England for the regulation of large food businesses. Using centralised data and streamlined processes, this reform will ensure the sector and consumers can benefit from modern, efficient and effective regulation which supports growth, reduces unnecessary burdens, and keeps consumers safe, this could have an impact on the pest industry, we will keep members updated.

 

Next steps for businesses

Now is the time for employers to review staffing costs, assess service pricing and plan how they will recruit and train the next generation of technicians. Strategic workforce planning, clear pricing strategies and investment in training will be essential as the industry adapts to the impact of Budget 2025.

 

Budget 2025: What It Means for the Pest Control Sector

• Increase in the National Living Wage to £12.71 per hour from April 2026.

• Higher wage rates for 18 to 20 year olds, rising to £10.85 per hour.

• Rising labour costs for technician roles and support staff, increasing operational expenditure.

• Future changes to salary sacrifice pension arrangements from 2029, reducing tax efficiencies for higher earners.

• Income tax and National Insurance thresholds remain frozen, contributing to long term pay pressures.

• • Fuel duty freeze extended until at least September 2026, providing greater certainty when planning fleet and fuel expenditure.

  • Corporation tax frozen, giving businesses more stability when planning investment in vans, specialised equipment and growth.

• Potential need to adjust pricing structures to maintain sustainability as staffing and compliance costs rise.

• • Greater emphasis on efficiency, route planning and minimising downtime to protect margins in a higher cost environment.

• Increased reliance on apprenticeships and structured training programmes to build a sustainable workforce.

• Critical importance of developing the new industry qualification framework so technicians enter the profession with strong foundations and employers can recruit with confidence.