Next UK: clothing firm announces price rises in 2025 - with shoes, dresses and men's fashion all costing more

• Next is planning a 1% price increase due to rising costs from the recent Budget measures
• The retailer faces an additional £67 million in wage costs, rising to £73 million by 2026
• Prices of certain dresses and clothing items will rise by up to £8.09
• Sales growth is expected to slow in 2025, with fewer job hires across stores and warehouses also predicted

A major British fashion retailer has announced plans to raise prices and warned of slowing sales growth in 2025 in response to the impact of recent Budget measures.

Next has said it faces an additional £67 million in wage costs for the year leading up to January 2026, which will rise to £73 million for a full year’s impact.

The increase is due to the Labour Government’s decision to raise employer national insurance contributions and the minimum wage, measures which will take effect from April.

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To offset the financial burden, Next has said that it will implement an "unwelcome" 1% price hike.

The brand joins a growing list of firms raising prices to cope with rising costs, as the British Chambers of Commerce reported this week that over half of businesses plan to increase prices in the next three months due to cost pressures.

The change means that the price of this Halston Bell Sleeve Maxi Dress will increase by almost 10 pounds (£8.09), while this much more affordable Lipsy Burgundy Red Long Sleeve Cross Front Midi Dress will increase by 49p.

These Clean Black Lift Slim And Shape Skinny Jeans will increase by 48p, and this Lipsy Black Faux Leather Pencil Skirt will go up by 43p.

In men’s clothing, this three-pack of White/Blue Slim Fit Easy Care Textured Single Cuff Shirts will rise in cost by 65p, and these Levi's Sequoia Slim 511 Jeans will be almost a pound (95p) more expensive.

The company also warned that sales growth will significantly slow over the coming year, and the Budget measures are expected to impact jobs.

Chief executive and Conservative peer Lord Simon Wolfson said Next would not be cutting jobs through redundancies, but confirmed it would take on fewer workers than normal in the year ahead across its warehouses and retail stores.

He added that for Next, it is “not a meltdown” situation, and said: “The cost increases are serious, but with a combination of price increases, efficiencies and cost savings, we can still grow profits in line with sales.”

What do you think about Next’s price hike and the impact of the recent Budget measures? Will these changes affect your shopping habits, or are you willing to pay more for your favourite items? Share your thoughts in the comments section.