Supermarket shoppers warned price of frozen food will skyrocket

The price of frozen food such as veg, and chips is set to skyrocket due to the , it has been warned.

Trade body the Cold Chain Federation said the increase in employers' National Insurance Contributions will cost firms that deliver frozen, as well as chilled supermarket and pharmaceutical, products an extra £620million. Its CEO Phil Pluck said: "This is just the beginning. The will inevitably lead to higher prices for consumers. Coupled with the impending business rates review, the UK public can expect to pay more for essential food and medicine."

Mr Pluck added: "Since the Budget announcement, cold chain operators have reported that increased wage bills are hindering their ability to create new jobs and offer competitive salaries. The Government's economic strategy risks stifling growth, suppressing wages and ultimately placing a greater financial burden on consumers."

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Chancellor announced last month that National Insurance Contributions for employers would rise from 13.8% to 15%. But the threshold at which businesses start paying National Insurance will be slashed from £9,100 to £5,000. It came as part of a drive by Ms Reeves to raise an extra £40billion in tax to pay for public spending, which included increasing the minimum wage.

The Cold Chain Federation said its industry contributed £14billion in gross value to the UK economy, supported 184,000 jobs and generated £3.7billion in tax revenue in 2023. According to the British Frozen Food Federation, 40% of UK consumers are buying more frozen food to amid the ongoing cost-of-living crisis. The contacted HM Treasury for comment.

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