The National Trust has announced plans to reduce its workforce by approximately 6%, equating to around 550 positions. The organization cited an inflated payroll and recent tax increases implemented by Chancellor Rachel Reeves as contributing factors to the decision.
The heritage and conservation charity stated that it is facing “sustained cost pressures beyond our control.”
These pressures include the rise in employer National Insurance contributions and the increase in the National Living Wage, which the National Trust estimates have collectively added over £10 million annually to its wage expenses.
The cost-cutting measures are part of a broader initiative aimed at achieving £26 million in savings.
“Although demand and support for our work are growing with yearly increases in visitors and donations; increasing costs are outstripping this growth,” the charity said in a statement.
“Pay is the biggest part of our costs, and the recent employer’s National Insurance increase and National Living Wage rise added more than £10m to our annual wage bill.”
A 45-day consultation period with staff commenced on Thursday. The Trust, which currently employs approximately 9,500 individuals, affirmed its commitment to working with the Prospect union to “minimise compulsory redundancies.”
Prospect acknowledged that while cost pressures played a role, “management decisions” also contributed to the Trust’s current financial difficulties.
Steve Thomas, Deputy General Secretary of Prospect, expressed concern that “once again it is our member who will have to pay the price.”
“Our members are custodians of the country’s cultural, historic and natural heritage – cuts of this scale risk losing institutional knowledge and skills which are vital to that mission,” he stated.
A National Trust spokeswoman confirmed that the organization is implementing a voluntary redundancy scheme, which is expected to significantly reduce the need for compulsory redundancies.
The job cuts will affect staff across all levels, including management. The spokeswoman added that all employees whose positions are at risk will be offered suitable alternative roles where available.
Following the conclusion of consultations in mid-to-late August, the workforce reductions are scheduled to occur in the autumn.
Chancellor Rachel Reeves announced the increase in employer National Insurance contributions in the Budget last October.
However, the measure faced considerable criticism from businesses, with retailers warning that job losses on the High Street would be “inevitable” when combined with other rising costs.
The increase in employer NICs is projected to generate £25 billion in revenue by the end of the current parliamentary term.