Last year's NI increase cost the hair and beauty sector £139 million. Now April 2026 brings another round of wage rises. If it feels like you're running just to stand still, that's because you are.

Labour is 60% of most salon budgets. When wages go up 4%, your costs don't go up 4%. They compound. Two years of this adds up fast.

The April 2026 numbers

National Living Wage (21+) rises from £12.21 to £12.71 per hour. That's 4.1%.

The bigger hit is 18-20 year olds: £10.00 to £10.85. An 8.5% jump as the government pushes toward equal pay for over-18s. If you employ juniors, this one hurts.

Apprentices and 16-17s go from £7.55 to £8.00.

Employer's NI stays at 15% with the £5,000 threshold. The painful bit from April 2025 isn't going anywhere.

What two years of rises looks like

A full-time stylist on minimum wage cost you about £23,795 in April 2024. Same person, same hours, April 2026? £26,435. That's £2,640 more in wages alone.

Factor in the NI increase from last year (13.8% to 15%, threshold halved to £5,000) and you're paying roughly £3,200 more per person than you were two years ago.

Five staff? £16,000 in extra costs. For the same team doing the same work.

Employment Allowance

The Employment Allowance is now £10,500. If your total employer's NI bill is under that, you pay nothing.

For very small salons, this absorbs the NI costs entirely. Owner plus two or three part-timers? You might be fine. Bigger teams get some relief but still feel the squeeze.

Check you're claiming it. Some businesses miss out because they don't realise they qualify.

What other salons are doing

The National Hair & Beauty Federation surveyed the sector. The numbers are bleak:

78% are raising prices. That's the highest on record. 47% are cutting staff hours. Another 47% are reducing headcount entirely. 41% have frozen investment in training, equipment, and refurbs.

None of these are good. But doing nothing isn't realistic either.

Raising prices

If you haven't raised prices in two years, you've taken a pay cut. Costs went up. Your prices didn't.

Be direct about it. "Our costs have increased and we're adjusting prices from [date]." No apology needed. Everyone knows what's happening with costs.

Give two to four weeks notice so regulars can book at the old rate if they want. Don't over-explain. A sentence or two is enough. Long justifications sound defensive.

Raise everything at once. One price increase is easier to communicate than three small ones spread over six months.

Most clients expect it. The ones who leave over £3? Probably not your best clients anyway.

Other ways to protect margin

Price rises aren't the only option.

Some salons now charge colour separately based on product used. Three tubes, pay for three tubes. It's fair, it's transparent, and product revenue isn't subject to the same employment costs as service revenue.

Minimum spend thresholds help too. Below a certain booking value, add a small fee. Discourages 15-minute appointments that don't cover chair costs.

Product margins haven't changed. Every shampoo you sell is profit without employment costs attached. Worth paying attention to.

A few salons are trying membership models. Unlimited blow-dries for a monthly fee. Locks in recurring revenue and clients who pre-pay tend to spend more when they visit.

Team structure

Nobody wants to cut hours or let people go. But if you haven't looked at staffing properly in a while, now's the time.

Check your chair occupancy. If stylists are sitting idle for chunks of the day, you're paying wages for empty chairs. Do you need everyone in on quiet Tuesdays? Could some shifts start later or finish earlier?

Some salons are moving to chair rental. It changes the relationship completely, and it's not right for everyone. But it does change your cost base. Worth understanding even if you don't do it.

Costs you can cut without pain

Before touching staff or services, look at everything else.

When did you last negotiate with suppliers? Loyalty should be worth something. Ask.

Colour mixing waste adds up. Small overages on every mix, dozens of mixes a week. Some salons save 15-20% just by measuring more carefully.

Check your energy supplier. Business energy deals exist. LED lighting pays for itself within months.

Audit your subscriptions. What are you paying for monthly that nobody uses?

What not to do

Don't cut training. Especially apprenticeships. Short-term saving, long-term talent problem. The sector's already struggling to bring people through.

Don't go quiet. If times are tight, your team knows. Better to be honest than let anxiety build.

Don't panic-discount. Slashing prices to fill chairs destroys margins. You end up busier and poorer.

The awkward truth

These cost increases aren't temporary. Waiting for things to go back to normal isn't a plan.

The salons that get through this will be the ones who adjust now. Prices that reflect reality. Costs under control. Rotas that match demand. A proper look at the numbers every week, not just when it feels bad.

None of this is fun. But the salons doing the work now won't be panicking in six months.