23 November 2016
The NHBF has reacted with dismay to today’s news in the Autumn Statement that not only will the National Living Wage be rising from April, but National Minimum Wages will also be increasing – for the second time in just six months.
Chancellor Philip Hammond announced the National Living Wage will rise by 4.2%, from £7.20 to £7.50 an hour, from April 2017. This is an increase that the NHBF had been warning salons to expect, as it is in line with the government’s stated ambition to increase the wage to £9 an hour by 2020.
However, Mr Hammond’s speech to MPs failed to mention that the government will also be raising National Minimum Wage rates from April, information that was only included within the Treasury’s accompanying documents and now confirmed by the Low Pay Commission.
This revealed that hourly rates will increase as follows:
- Age 21-24 to £7.05 (+10p)
- Aged18-20 to £5.60 (+5p)
- Aged 16-17 to £4.05 (+5p)
- Apprentices to £3.50 (+10p)
NHBF chief executive Hilary Hall said: “Many of our members are now almost resigned to minimum wage rates just going up and up. In just 12 months – from April 2016 to April 2017 – salons and barber shops will have had to cope with the arrival of the National Living Wage, two sharp rises in National Minimum Wage rates and a further rise in the National Living Wage."
"We all understand the pressures that have been created in our economy and society by pay disparties, but for a labour-intensive sector such as hair and beauty, the rate and frequency of increases is unsustainable."
The NHBF’s president, Agnes Leonard added: “The government’s announcement that it is also going to invest an additional £4.3m in minimum wage enforcement makes it even more imperative owners ensure they are paying employees their correct legal minimum wage. But there’s no doubt that some salon owners will struggle to absorb these additional costs. In the face of stiff competition on the high street, we will see some salons reducing hours, laying off staff or even closing.”