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The H2 Employer Action Plan: Cost of living is rising. Budgets aren't.

Learn ways to support your people when budgets are tight. The practical guide for HR, finance and operations leaders who want to be great employers - without breaking the business.

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SUPPORTING 500+ GROWING UK BUSINESSES

H2 action plan

In 2026, you’re squeezed on both sides of payroll.

Your employees are about to ask for pay rise. You want to help with cost of living, but the budget just isn’t there. Or so you thought. This is your action plan for H2 👇

Step 1

Use salary sacrifice to unlock employer NI savings.

For example, pension salary sacrifice at Mintago sees 98% employee uptake - the more who join, the more you both save.

For every pound sacrificed, you save 15% on employer National Insurance.

Step 2

Use that money to support your business and employees - pay rises, commissions, benefits.

You've just found money you were sending to HMRC anyway.

Financial benefits stretch their pay further - especially when pay rises alone aren't enough.

An example

Avatar

Sarah, 34

Operations Manager

 
 
£35,000 pay  |  Drives to work  |  One 2yo child  |  5% pension contribution

Most pay rises planned for 2026 are around 3% (HR Data Hub)

Sarah’s 3% pay rise / year £1,050
Tax & NI -£294
Sarah takes home £756
But 3% inflation costs her -£862



 


A 3% pay rise helps Sarah a bit with cost of living. But not enough.

Step 1: Enroll Sarah in Pension Salary Sacrifice.

Sarah’s 5% contribution £1,750
Sarah saves tax & NI £140
Your also save employer NI  £262

 

 



TIP:  Use your employer NI savings to boost her pay or fund new benefits.

Step 2: Choose financial benefits that truly help her.

Childcare +£2,500
Washing machine +£150
EV + charging +£1,500
Summer holiday +£120
Retail discounts +£250
Financial advice Debt free
NEW: Sarah's savings £4,250


TIP: Those savings support her by making her money go a lot further. This is an equivalent of 12% pay rise.

The Mintago flywheel

Salary sacrifice unlocks money for better benefits.
Higher uptake drives even bigger savings for your people pot.

Customer story

“We’ve saved more money than we predicted. It's all gone back into the people pot, which allows us to introduce more benefits, but it also goes towards pay rises, bonuses, incentives, commission – all of those lovely things.”

Kelly-Davis2
Kelly Davis
Head of People, Sessions
SALARY SACRIFICE

Reveal how much you and your employees could save.

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Strategies from the experts

They’ve been where you are. They know what works.

jade Profile Pic

SPEAKER

Jade Berry

People Director, Pho Jade heads up the people strategy at Pho, supporting 1,300+ hospitality staff across the UK.



 Connect with Jade 

Kate Profile Pic

SPEAKER

Kate Underwood

Award-winning HR consultant and journalist

Founder of Kate Underwood HR & Training, Kate helps small businesses sort their HR, without the faff.


 Connect with Kate

Chieu Profile Pic

SPEAKER

Chieu Cao

Founder of Perkbox & Mintago

Chieu's spent the last two decades in employee benefits and is passionate about daily usage vs. impactful benefits. 


 Connect with Chieu

Katrina Murray, Zircom

SPEAKER

Katrina Murray

Snr. People Operations Manager, Zircom Ten years experience in People leadership from Apple to Zircom. Passionate about transforming culture and creating belonging.


 Connect with Kat

What financial support can you offer?

High impact benefits that make a real difference.

Make pay work harder

→  Salary sacrifice (childcare, EV, etc.)

→  Voluntary Living Wage

→  Retail Discounts

→  Grocery Savings

→  Energy switching

→  Bonuses

→  Employee share plans

→  Budgeting tools

Absorb shock

→ Direct payroll savings
→  Earned wage access
→  Salary advance
→  Interest-free welfare loans
→ Debt advice
→  Income protection
→  Health cash plans
→  Enhanced sick pay
→  EAP

Build the future 

→   Enhanced pension contributions
→  Pension Search
→   Retirement planning
→  Financial advice
→  1:1 coaching / guidance
→   Financial education
→   Financial health checks
→  Planning tools

The power of education

“You might eventually grow to being able to fund into salary sacrifice, season ticket loans, and being able to use Mintago to genuinely provide options, but don't underestimate the power of education.”

Katrina (1)
Katrina Murray
Snr. People Operations Manager, Zircom

Be careful when cutting benefits

“I am seeing it, and I understand why they're doing it, but I believe it's a massive trap.”

Kate (1)
Kate Underwood
Award-winning HR Consultant and Journalist

Offer a wide range of support

“We have a number of options, to give a range of different benefits that people can use and tailor to their own situation.”

Jade (1)
Jade Berry
People Director, Pho

Focus on impact, not usage

“Employees that have better financials will have a happier household, family, relationships, and they bring that to the workplace.”

Chieu (1)
Chieu Cao
Co-founder and CEO, Mintago

The H2 squeeze on both sides of payroll

The background on why H2 2026 is going to be tough for employees and employers.

IN THE NEWS

1) People are struggling to afford the basics.

A 3% pay rise alone, won’t be enough.

ElecThe energy price cap is up13%
GasGas prices are up 24%
FoodFood prices up 50% since 2021

 mintago

NEW RESEARCH 2026

2) Employees are living on the edge of their finances.

Exclusive Mintago data shows many employees are living month-to-month, without a safety net. They’re one crisis away from financial trouble.

1.
2.
3.
1.
2.
3.

1 in 2
aren't building any savings

51.2% spending ≥ income

46%
have less than 3 months of emergency savings

         

46% with less than 3 months saved

3 in 5
would struggle to cover an unexpected expense

         

62% say they'd struggle

IN THE NEWS

3) But employers are feeling the squeeze too. 

The cost of employing people has gone up.

Living WageNational Living Wage £12.21 ↗ £12.71
NI UPEmployer National Insurance 13.8% ↗ 15%
threshhold down Employer NI threshold  £9,100 ↘ £5,000

4) Replacing staff is riskier and more expensive

More employment law changes kick in from January 2027.  That means the next person you hire is protected. 

IN EFFECT NOW

Statutory sick pay starts from day one

JANUARY 2027

Unfair dismissal protection will start from 6 months

JANUARY 2027

Statutory caps on compensation are being removed

“It's overwhelming. These aren't choices people had to make 20 years ago.”

Jade (1)
Jade Berry
People Director, Pho

“Replacing a really good person can cost you more than a whole year of benefits for the team you've already got.”

Kate (1)
Kate Underwood
Award-winning HR Consultant and Journalist

What support do employees actually want?

Most SMEs do well offering physical and mental health benefits; often a PMI, Virtual GP or EAP. But employees want financial support the most.



TIP:  "46% of UK adults say money worries have affected their mental health and physical health." (SJP)

What SMEs offer
What employees want
Current finances
7%
30%
Long-term finances
19%
35%
Mental health
27%
24%
Physical health
29%
29%
Childcare
10%
18%
Elderlycare
3%
8%
Mintago top financial wellbeing benefits in 2026

Speak to a benefits expert today.

Looking to do more with less?

Join 500+ UK businesses already saving money, time and their best talent with Mintago. No pressure. No jargon. Just a quick conversation about what you could save.

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