The cost of a contact centre –Luke Cuthbertson, Head of CX Consulting Practice at Route 101 discusses what the actual costs of running a contact centre are
The UK contact centre industry enters 2026 facing a structural shift. For years, the sector relied on a high-volume, human-intensive model that was sustainable under different economic conditions. However, the convergence of statutory wage increases, and the development of generative voice technology has created a new operational reality.
From April 1, 2026, the National Living Wage (NLW) for workers aged 21 and over increases to £12.71 per hour. This represents a 4.1% rise from the previous year, following the recommendations of the Low Pay Commission (LPC). While this increase is lower than the double-digit spikes of previous years, its impact is compounded by the 8.5% rise for workers aged 18 to 20, whose rate moves to £10.85 as the government works toward a single adult wage.
For contact centre leaders, these figures represent more than just a higher payroll. The rise causes a ripple effect for traditional pay structures. When the minimum floor rises, the gap between entry-level agents and experienced supervisors narrows. To maintain a clear career progression and retain talent, organisations must also increase salaries for mid-tier roles. When combined with the National Insurance changes introduced in April 2025, the total cost of employment for a full-time agent is significantly higher than it was eighteen months ago. This financial pressure is driving a rapid pivot toward automation.
In 2026, the distinction between a “chatbot” and a “voice agent” has largely disappeared. Previous iterations of voice automation were hindered by high latency and rigid, menu-driven structures. Contemporary systems, powered by Large Language Models (LLMs), now offer near-instant response times and the ability to understand nuanced British dialects.
These systems are no longer restricted to simple tasks like balance enquiries or password resets. They can now manage complex, multi-turn conversations that involve intent recognition and emotional context. This allows the automated layer to act as a primary filter, resolving high-volume, low-complexity queries without human intervention.
As Voice AI absorbs routine interactions, the role of the human agent is undergoing a fundamental transformation. The agents remaining in the “live” queue are no longer processing simple transactions. Instead, they are handling “exception-based” cases that require empathy, complex reasoning, or high-stakes negotiation.
This shift necessitates a significant investment in training; Agents must be skilled to act as specialists. In this model, the human employee does not just answer the phone; they oversee the AI outputs and step in when the technology reaches its logical limit. Gartner predicts that by 2028, no major global organisation will have entirely removed humans from their service operations, but the nature of the work will be hybrid.
While the temptation to automate is high, 2026 brings a warning about the “automation trap.” Organisations that prioritise cost-cutting over service quality risk eroding long-term customer loyalty.
Furthermore, the UK regulatory environment remains a critical factor. The Financial Conduct Authority (FCA) continues to emphasise the “Consumer Duty,” which requires firms to deliver good outcomes for customers. If an automated voice system creates a barrier for vulnerable customers or fails to provide a clear escalation path to a human, it could lead to significant regulatory scrutiny. Transparency and the ability to evidence outcomes will continue to remain a key focus. Customers must know when they are speaking to an AI and have the option to opt-out if the interaction becomes frustrating.
The coming year is not about replacing humans with machines. It is about restructuring the contact centre to account for the reality of higher labour costs and more capable technology. The 2026 experience is defined by a hybrid workforce where Voice AI provides flexibility for customer service while humans provide the connection.
Luke Cuthbertson is Head of CX Consulting Practice at Route 101.
Route 101 is an award-winning technology systems integrator delivering market-leading cloud contact-centre and customer-engagement solutions.
Its products and services help organisations transform customer experience, empower their workforce, and optimise business operations. With strong partnerships and a relentless commitment to service excellence, Route 101 continues to be a disruptor in the contact-centre and CX technology space.
For additional information on Route101 visit their Website
