24 February 2015
The recommendation by the Low Pay Commission of a 3% increase in the adult rate is deeply disappointing.
An increase of this magnitude – which the commission has recognised will be, if accepted by government, the largest hike since 2007 – would hurt salons badly.
Hairdressers and barbers are predominantly small, labour-intensive businesses working in a very competitive environment. Signs of recovery are patchy and many of our members say they are still struggling economically.
Salons are also having to find extra money to fund pensions auto-enrolment and proposed changes to apprenticeships.
This rise, along with the commission’s proposed increases to the other age-related rates and the apprentice rate – all by well above the rate of inflation – will make it harder for salons to employ and bring on talented young stylists. For some salons it may mean having to shed valued employees altogether.
The government, we know, normally broadly accepts the commission’s recommendations. Nevertheless, for the health of our industry, we urge ministers to consider carefully the effect these recommendations could have on small high street salons, and to show restraint in deciding this autumn’s minimum wage rates.
The Low Pay Commission has recommended:
- An increase of 3%, to £6.70 an hour, in the adult rate (which applies to workers aged 21 and over)
- An increase of 3.3%, to £5.30 an hour, in the youth development rate, which applies to 18-20 year olds
- An increase of 2.2%, to £3.87 an hour, in the 16-17 year-old rate
- An increase of 2.6%, to £2.80 an hour, in the apprentice rate, which applies to all apprentices in year one of an apprenticeship, and 16-18 year old apprentices in any year of an apprenticeship
- An increase of 27p in the accommodation offset, to £5.35.