NHBF tells politicians: ‘Let’s take politics out of the national minimum wage’

The NHBF has urged politicians to stop using the national minimum wage as “a political football”, after a group of MPs called for the wage to be increased to £10 an hour, irrespective of the age of the worker.

The wage is currently set at an hourly rate of £6.50 for over-21s, £5.13 for employees aged 18-20, £3.79 for those under 18 and £2.73 for apprentices aged 16-18 or in their first year of training if aged over 19.

An early day motion sponsored by Labour MP John McDonnell also called the current rates for apprentices and under-18s “a scandal”.

The early day motion, which politicians use as a way of highlighting an issue or concern, secured the backing of 26 MPs, mainly Labour but also including Respect MP George Galloway.

NHBF chief executive Hilary Hall warned the MPs were failing to recognise the pressures small, labour-intensive businesses such as barber shops and hairdressing salons were still under, despite the improving economic picture.

Let’s not forget employers don’t just pay the wage for apprentices. They will also be paying mandatory cash contributions when new apprenticeship funding arrangements come into play next year.

“Auto-enrolment for pensions will also be affecting smaller businesses next year and other costs continue to rise.

“Rises in the national minimum wage in labour-intensive, low pay industries such as hairdressing have a big impact on business viability, and therefore on employment.

“MPs of all parties should stop using the minimum wage as a political football. Let’s leave the Low Pay Commission to get on with its job of deciding on future wage rates, free from political pressure.”

The commission is expected to announce its recommendations for 2015 rates in February.