Hiking minimum wage could ‘kill off’ Saturday jobs, small businesses warn
PLANS to hike the minimum wage could kill off the Saturday job, small businesses have warned.
Labour ministers have vowed to equalise pay so 18 year-olds are paid the same as older adults.
But the Federation of Small Businesses warned this could spell the end of young people getting a Saturday job at their local pub or high street.
Tina McKenzie, Policy Chair, Federation of Small Businesses (FSB) said: “For many of us, a Saturday job was our first experience of the world of work, teaching about responsibility and accountability, the value of money you’ve earned yourself, and how to get on with other people outside a school or home setting.
“Over two in five small firms that currently employ people aged 18-20 said a flat adult rate would make them less likely to hire people in that age group.
“While the same proportion said they’d have to raise their prices.
“As with any potential risk to employment, if the Government were to go ahead with a change it’s important to phase it over time to allow small firms to prepare and adapt.
“Small businesses like giving people their first chance in work.
“But hiking costs could mean the end of the Saturday job.
“That’s bad for young people later in life, and bad for the economy too.”
Ministers have told the Low pay Commission to take into account the cost of living when reccomending the rate for the minimum wage.
They have also vowed to create single minimum wage for 18 to 20 year-olds. They will do this gradually over time.
A spokesman for the Department for Business and Trade said: “This Government is changing the rules to put more money in working people’s pockets, including younger workers.
“But we have also been clear we need to consider the businesses who pay these wages, and also the impact on the wider economy, which is what we have instructed the Low Pay Commission to do.
“We believe a hard day’s work deserves a fair day’s pay and that’s exactly what our Make Work Pay plans will do working in conjunction with business.”