Curious about the latest UK employment trends that are shaping the year ahead? You’re in the right place. Read on to discover the latest employment updates from our team on tax bandings, skills shortages to tap into, and much more.
What do the current tax bandings mean for your pay?
In a nutshell, the structure of UK income tax remains unchanged, with thresholds frozen until 2028:
Personal Allowance: £12,570 (0%)
Basic rate: 20% (£12,571 to £50,270)
Higher rate: 40% (£50,271 to £125,140)
Additional rate: 45% (over £125,140)
The freeze on tax thresholds creates what is unattractively known as “fiscal drag”. This means that as your wages rise with inflation, a larger portion of your income is “dragged” into higher tax brackets, which effectively reduces your real-world buying power. Employees near the £50,270 and £100,000 brackets are hit hardest, as surpassing £100,000 creates a 60% effective tax rate as your personal allowance is gradually withdrawn. To add insult to injury, recent hikes in Employer National Insurance (rising to 15% in April 2025) put indirect pressure on staff.
However, there is a positive shift. Employers are becoming more aware of this pressure and are increasingly offering:
- Salary sacrifice schemes (particularly pensions)
- Bonus structures and non-cash benefits
- Flexible working arrangements that reduce the overall cost of living
In other words, the total reward is becoming more strategic and is less about just salary.
Are you better off on a lower salary because of childcare and tax allowances?
This remains a key concern, particularly for mid-to-high earners. As outlined by HM Revenue and Customs (2025 guidance):
- Childcare support cuts off at £100,000 income
- Personal allowance tapers above this level, creating a 60% effective tax band
This can create short-term situations where earning slightly less results in higher net income.
However, the wider trend is encouraging:
- Employers are increasingly offering family-friendly benefits packages. Our policy at Bramwith is to ensure all our colleagues are supported, no matter what their situation. This includes benefits and accommodations that reflect the importance of promoting a healthy work-life-family balance.
- More organisations are introducing enhanced childcare support and flexible working policies
- Salary structuring (e.g. pension contributions) is more widely understood and used
The result: employees have more tools to manage their income strategically rather than being constrained by headline salary alone.
Why are skills shortages still shaping the UK labour market?
Skills shortages remain one of the defining features of the UK economy. However, they’re also a major source of opportunity.
The Future of Jobs Report 2025 from the World Economic Forum highlights ongoing shortages in supply chain skills, reinforcing the need for candidates who can support future growth and modernisation. Demand for procurement professionals continues to outpace supply, with skills gaps particularly acute in strategic sourcing, supplier risk, and sustainability
What’s driving this?
- Ongoing global supply chain volatility
- Increased regulatory and ESG requirements
- The growing importance of procurement as a strategic function
What does this mean for procurement and supply chain professionals?
This is where the outlook becomes much more positive. As we know, procurement and supply chain roles are no longer viewed as purely operational; they are now central to business resilience and growth.
The Gartner Supply Chain Outlook, 2025 report highlights that:
- Supply chain leaders are playing a bigger role in enterprise strategy
- Organisations are investing more in digital supply chain capabilities
- Talent development is a top priority
In practical terms, this means:
- Greater visibility and influence within organisations
- Faster career progression for high-performing professionals
- Increased demand for hybrid skill sets (e.g commercial + digital + strategic)
Which skills will be most valuable in 2026 and beyond?
Across all sectors, but perhaps especially in procurement and supply chain, the most valuable professionals are those who combine technical expertise with strategic thinking.
Insights from the World Economic Forum (Future of Jobs Report) and Chartered Institute of
Procurement & Supply highlight demand for:
- In-demand procurement and supply chain skills:
- Supplier relationship management
- Risk and resilience planning
- Sustainable sourcing and ESG compliance
- Data analytics and digital procurement tools
- Contract negotiation and commercial acumen
- Core transferable skills:
- Adaptability
- Stakeholder communication
- Problem-solving
- Leadership
The key trend: Employers are increasingly hiring for capability and potential, not just experience. This opens doors for professionals willing to upskill or pivot.
How is pay evolving in procurement and supply chain?
While overall wage growth is stabilising, procurement and supply chain remain relatively strong performers.
The Office for National Statistics (2026 labour market data) shows steady wage growth across professional services and logistics-related roles.
Meanwhile, industry insights from the Chartered Institute of Procurement & Supply indicate:
- Continued upward pressure on salaries for skilled professionals
- Increased use of bonuses tied to performance and cost savings
- Strong contract and interim markets
Encouragingly, many organisations are recognising procurement’s direct impact on cost control and value creation, which is translating into greater investment in talent.
Is job security improving?
The picture here is more stable than you might expect. In February 2026, the Bank of England suggested that hiring demand is softening slightly, but unemployment remains relatively low
In procurement and supply chain, job security is often stronger due to:
- The critical nature of these functions
- Ongoing global uncertainty that requires skilled oversight
- Increased focus on resilience and continuity planning
In short, these roles are becoming much more essential, not less.
What should employees be doing now to stay ahead?
The most successful professionals in 2026 are those taking a proactive, informed approach. Key areas to consider honing your skills in include:
Financially:
- Understand how tax thresholds affect your take-home pay
- Use pension contributions or salary sacrifice where appropriate
- Consider the full value of your benefits package
Professionally:
- Invest in procurement and supply chain skills that align with future demand
- Build digital and data literacy
- Seek roles that offer strategic exposure, not just operational responsibility
Strategically:
- Think long-term about career growth, not just immediate salary
- Position yourself in sectors with strong demand, like procurement, logistics, and supply chain
- Work with a specialist procurement and supply chain recruitment company to optimise your chances of finding your ideal role
Maintaining an optimistic outlook
While headlines often focus on constraints such as taxes, inflation, or economic uncertainty, the underlying story is more positive.
For UK employees, particularly in procurement and supply chain:
- Demand for skills is strong
- Career pathways are expanding
- The role of these functions is becoming more strategic and visible
At the same time, employees have greater awareness and control over how they manage income, benefits, and career progression.
If you’re looking to take the next step in your procurement and supply chain career, talk to us. We work with some of the top businesses in the UK and globally, many of which are currently actively recruiting. Get in touch today to start your journey to your dream role.
