IPSA (the UK-based International Professional Security Association) has brought out a second version of its guidance document, ‘Establishing minimum costs to deliver labour-based security services’, aimed at buyers and suppliers of guarding services.
Like the first edition, this one identifies minimums according to the law, regulations, and industry costs. The all-important numbers are a charge rate, when an officer is paid the National Minimum Wage, of £17.54; and when the guard is paid the Real Living Wage, £18.09. IPSA says that the document last year was first published ‘in response to identified widespread malpractice’, as targeted by the UK regulator the Security Industry Authority (SIA) under Operation Empower.
IPSA points out that it’s used the Real Living Wage, as a suggested lowest pay rate, because those the industry association consulted regarded the National Minimum Wage as ‘not viable for a sustainable security business given the pressures on labour availability’. The guidance also noted the increase in costs generally as a result of the rise in National Insurance (NI) contributions, as set in the Autumn 2024 Budget. That has meant about a 50 per cent rise in hourly increments alone. More generally, the document also noted rises in insurance, premises and equipment costs due to inflation.
The document set a baseline specification, defined as an ACS (approved contractor scheme)-compliant security officer, without extra equipment or training beyond the SIA licence basic. The spec assumed a ‘168’, namely a 24-hour guarding of a site, by a team of four officers working ‘four on, four off’, and 12-hour shifts, giving an average of a 42-hour working week. The document noted that other ways of covering a site could be officers working 56-hour weeks (although that would mean higher National Insurance costs), or eight-hour shifts (which would require more officers, meaning more costs in terms of uniforms and equipment).
Among the details, the third largest cost after hourly pay and NI would be holiday pay. The spec included management of the contract, such as one welfare check for each officer every 12 weeks, although IPSA recommends monthly visits as good practice; a monthly phone call to each officer; and lone worker check calls once an hour.
The document noted a shortage of labour, and the industry-wide need to retain people and to attract new talent; hence it encouraged guarding firms to allow for a budget to develop their employees, on the lines of the ‘Skills Pledge’ as signed up to by numerous guard firms to back the Security Skills Board.
Background
The National Minimum Wage, as set by UK Government, is rising by 6.7 per cent on April 1 to £12.21, from £11.44 (less for the under-21s and apprentices); while the Real Living Wage, as set by the Living Wage Foundation, is £12.60 (and £13.85 in London to reflect the higher cost of living in the capital).
Photo by Mark Rowe.
https://professionalsecurity.co.uk/news/commercial-security/ipsa-guide-to-minimum-guard-costs/