Redundancy figures could soar by more than 10,000 compared to last year.
Rachel Reeves could face a fresh nightmare with high redundancies predicted (Image: Getty)
Up to 327,000 workers could lose their jobs this year as soaring fuel and energy prices clash with Rachel Reeves’ policies. Richard Hunt, director at Liquidation Centre, predicted the figure after the number of redundancy notices filed in January and February shot up by 8.5% compared to the same period last year.
Some 736 employers filed redundancy notices in January and February, impacting more than 56,000 roles. If Mr Hunt’s devastating prediction came true in 2026, redundancies would exceed last year’s estimated total by more than 11,000 roles, which was already the highest since the pandemic. Job loss figures would nearly reach those seen during the 2009 financial crash, reports London Business News.
Fears are mounting that the higher fuel prices, due to the US-Israel war with Iran, could see more people losing their jobs.
Pat McFadden, the Work and Pensions Secretary, told Sky News that oil prices could impact employment. He said the economy was previously “going in the right direction” but the war had created uncertainty.
“There is likely to be an effect on prices, which feeds through from energy costs, and there may well be labour market implications,” he said. When pressed on job losses, he added: “Yes. It could happen.”
Industries such as hospitality have already expressed concern about high running costs that make it difficult to run at a profit.
There has been widespread criticism for Rachel Reeves‘ policies, including her increase to employer National Insurance contributions and minimum wage. When you add fuel into the picture, which could push up the price of food and transport, it could hit their margins even harder.
Restauarant TGI Fridays filed for administration in January, while pubs have been closing at a rapid rate. The British Beer and Pub Association (BBPA) said 161 pubs closed in the first three months of this year across England, Scotland and Wales, equating to the loss of around 2,400 jobs. On the high street, major players such as Claire’s and Russell & Bromley also entered administration in January.
Mr Hunt said that businesses were facing a combination of rising operational costs, weakening consumer demand, wage inflation, and broader economic uncertainty, alongside Labour policy changes.
He warned that firms were now increasingly turning to automation and artificial intelligence to cut costs and stay afloat amid a combination of financial pressures.