There has been a great deal of talk about a ‘race to the bottom’ within the UK security industry over the last decade or so. This has been driven by naive clients constantly demanding the cheapest possible security guarding charge rates, while still expecting some level of quality service. ‘Cheap’ and ‘professional’ never ever go together, despite the promises of well-rehearsed sales representatives during contract tender presentations. 

Rogue Operators and Criminal Tactics

This increasing demand for cheap services has driven the growth of rogue security companies. I use the term rogue to include companies that in reality are far more insidious. Hiring security workers who have had zero or dubious mandatory SIA training, paying cash in hand off the books, arranging student visas to import cheap foreign workers, putting up workers in houses of multiple occupancy, and paying rates way below the legal minimum wage are all part of the MO of these companies. 

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Enforcement Struggles and Regulatory Gaps

The Security Industry Authority is working hard with bodies like the Police, HMRC and Border Force to find and prosecute these companies, but without mandatory business licensing, they close down on Monday and pop up again on Wednesday with a new name and company number. 

Stamping out this sort of criminality and malpractice in the industry would seem simple. Just make sure that clients are fully aware of the amount they need to pay to ensure that the security services they want are going to be legally and ethically supplied. But what is that magic charge rate? 

GLAA’s Framework as a Model

For some years, a Government organisation called the Gangmasters and Labour Abuse Authority (GLAA) has been publishing a fair charge rate framework covering the purchase of services in the sector they are responsible for, mainly seasonal agricultural workers. This provides crystal clear guidance for employers and clients alike, and red flags are easily raised if security guarding charge rates below the published minimum are offered.

Recently the security industry has obtained its very own fair charge rate framework, and although it has not yet been officially approved by the Security Industry Authority, it has growing support. John Lambert, Chair of the International Professional Security Association, has been campaigning for the adoption of a security industry-dedicated document similar to the GLAA. 

Introducing the IPSA 2025 Fair Charge Rate Framework

Recently, after a lot of hard work, the IPSA published their 2025 Security Industry fair charge rate framework. This is a huge step towards industry improvement, and its importance cannot be overstated.

With the new minimum wage for persons over 21 years old, going up to £12.21 per hour from the 1^st April, an unenlightened potential client may think that £15 per hour is a perfectly acceptable rate to pay for guarding services. Surely £15 per hour gives at least a pound profit for the security company, right? Let’s have a look at the reality.

Using the IPSA 2025 fair charge rate framework, let’s see how much profit a £15 per hour charge rate leaves for the security company providing the service:

Cost Item	Cost
Minimum Wage	£12.21
Employer’s National Insurance	£1.76
Holiday Pay	£1.47
Sick Pay	12p
Pension Contribution	33p
Apprenticeship Levy	7p
Uniform	10p
SIA Licensing & ACS Costs	7p
BS7858 Vetting	8p
Account Management	19p
Equipment (Phone, patrol recorder)	17p
Premises Costs	26p
Overhead Contribution	26p
Business Insurance	12p
Subtotal (Before Profit)	£17.54 (A rise of 11% or £1.75 per hour over 2024)
+10% Profit on Basic Pay	£1.22
Total Charge Rate Needed	£18.76 per hour