NFU warns of risk of damage to UK horticulture if EPP proposals are enforced
A review into the Employer Pays Principle has raised concerns about the commercial challenges if growers are required to cover all costs associated with seasonal workers under the Seasonal Worker Scheme, the NFU has warned.
The study, jointly commissioned by Defra and the Seasonal Worker Taskforce, found that any additional costs that cannot be passed up the supply chain will put significant financial pressure on growers.
It also noted that many growers operate on profit margins as low as two per cent, and implementing EPP could force some out of business. While growers may be able to pass on some extra costs, they would still face serious losses, potential closures, job cuts and reduced production.
NFU horticulture and potatoes board chair Martin Emmett stressed that seasonal workers play a vital role in getting the nation’s fresh fruit, vegetables and flowers onto supermarket shelves, and without them the sector simply wouldn’t function.
“This review confirms what many growers have feared – that expecting employers to cover all extra costs could seriously damage UK horticulture,” he added. “Most businesses already run on very tight margins, so this would push some over the edge. That is at odds with the government’s Food Strategy ambition to provide more easily accessible healthy food for the nation.”
Emmett also pointed out that there are some gaps in the study, such as the fact that it didn’t look into the prevalence or scale of any possible worker debt. “This is an important issue that requires further thought to determine the best way to address it while also safeguarding the future of UK horticulture and food security,” he said.
“Employers care deeply about worker welfare and are already working closely across the supply chain to improve experiences. This review is part of that ongoing effort, and we will work with the Taskforce to carefully consider the findings of the review and to agree next steps without putting the future of British farming and our food supply at risk.”
