Life post budget 2025

⏱️ 37:49 🎤 Louise Trehearn, Diane Greenwood

AUDIO EPISODE

0:00

Chapters

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0:00

Budget Impact on Cleaning

Louise and Diane introduce the episode's topic: the impact of the latest budget and SSP changes on the cleaning industry.
0:41

Small Business Disadvantage

Diane highlights that government policies often overlook small businesses, particularly in the cleaning sector, leading to disproportionate negative effects.
0:01

SSP Day One Challenges

Louise details how SSP from day one, coupled with no lower earnings limit, will significantly increase costs for businesses employing part-time mothers who often have higher absence rates due to childcare.
0:08

Calculating Hidden Costs

Diane and Louise discuss the hidden costs of increased absence and holiday accrual during sick leave, noting that these expenses could surpass minimum wage increases.
0:10

Preparing for Changes

Diane outlines her strategy to prepare for the changes, including creating a 'sickness fund,' updating employment contracts and handbooks, and providing training for DCBN members.
0:14

Managing Absences Strictly

The hosts emphasize the need for stricter absence management, including back-to-work interviews and disciplinary action, due to the increased financial burden of sick leave.
0:21

The Self-Employed Shift

Louise expresses concern that rising employment costs will push businesses towards using self-employed contractors, undermining worker rights and potentially impacting tax compliance.
0:26

Price Rises & Shrinking Businesses

Louise projects significant price increases for cleaning services to cover new costs, acknowledging that this may lead to customer loss and business contraction rather than operating at unsustainable margins.
0:29

Recruitment & Loyalty Changes

The hosts observe that rising unemployment is making recruitment easier, which, while beneficial for filling roles, could also lead to employers being less tolerant of issues like high absence rates, potentially eroding team trust.
0:39

Industry Adaptation & Stability

The discussion concludes with reflections on the cleaning industry's forced professionalization, the need for stability in economic policy, and the commitment of DCBN to support members through these challenging times.

Speakers

Louise Trehearn

Host

Diane Greenwood

Host

Key Takeaways

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Proactively calculate the exact financial impact of new policies, especially SSP from day one and holiday accrual during sick leave, to accurately adjust pricing and budgeting.

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Update all employment contracts and staff handbooks to comply with new regulations and protect your business, consulting with HR experts or legal counsel if necessary.

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Implement strict absence management protocols, including back-to-work interviews and monitoring tools like the Bradford factor, to minimize the impact of short-term, frequent absences.

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Prepare for significant price increases (potentially £2-5 per hour) to cover rising operational costs from minimum wage, SSP, and other employer contributions, and be ready to communicate these changes to clients.

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Develop a 'sickness fund' or similar financial buffer to proactively set aside funds for expected increases in sick pay expenses, allocating a percentage of revenue to it regularly.

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Evaluate your staffing model; if employment costs become unsustainable, explore the implications of shifting towards a self-employed or agency model, carefully considering legal and ethical obligations.

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Prioritize supporting and retaining loyal, high-performing employees, as easier recruitment might tempt some employers to churn staff, but retaining trained, ethical teams is crucial for long-term success.

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