Workers claim increase in minimum wage has both positive and negative effects

Young employees in Gloucestershire express skepticism over the impact of the upcoming minimum wage increases on their monthly earnings. Starting in April, the hourly wage for workers aged 21 and older will rise by 50p to 12.71, while 18- to 20-year-olds will see an 85p increase to 10.85.

Some local business owners warn they may struggle to cope with the higher wages, potentially leading to reduced hours or staff layoffs. A spokesperson from the Department of Trade stated that the rise is designed to "put more money in low-paid workers' pockets" and emphasized confidence that it "will not place an undue burden on businesses."

Ella Williams, 18, who works at two pubs near Stroud, shared her perspective on the pay increase. Saving for midwifery studies, she noted that while higher wages are beneficial, they may also increase her tax contributions, limiting the net gain. "It's good to have a minimum wage rise, but it will push me into paying more tax, so it doesn't change much," she said.

Her employer, Wesley Birch, highlighted the financial strain on the hospitality sector. Currently earning around 6 per hour, he pledged to protect staff where possible but admitted that cuts may be unavoidable. "Our only real option is to reduce staff hours to keep the pubs operating," he explained. "Without reforms, we could face a widespread closure of pubs."

Last month's Budget, presented by Chancellor Rachel Reeves, confirmed the scheduled minimum wage increases: 10.85 for 18- to 20-year-olds and 12.71 for workers over 21. This follows significant raises last year, alongside higher employer National Insurance contributions.

From April, full-time minimum wage positions will approach the earnings of entry-level graduate roles, which in the South West average 25,00028,000 annually, not accounting for student loans or fees.

University of Gloucestershire law student Erica Messineo welcomed the wage boost but expressed concern about living costs and the slow start to post-graduate earnings. "Even with the increase, starting salaries are low, and additional fees for further studies add financial pressure," she said.

Financial advisor Alex Knell noted that the increase could shift disposable income patterns, especially for younger workers living at home. "Younger employees may have more to spend, often on impulse purchases, which could influence inflation. They may end up with more disposable cash than their parents," he explained.

Author: Maya Henderson