Minimum wage increase could be "breaking point" for Hampshire small businesses

The Hampshire Federation of Small Businesses is telling us the minimum wage increase could push businesses to "breaking point".

The minimum wage is rising to £12.71 an hour - up £900 a year - for 2.4 million workers.

Nicky Kildunne's from the Federation of Small Businesses in Hampshire - she says she wants to see more support put in place.

She said: "Small businesses have got a real sharp rise in costs in April coming down the road, and wage bills are at the centre of it.

"But they're not the only issue that businesses are really worried about.

"To be honest, this could really push a lot of small businesses to breaking point.

"Employment costs are rising really quickly.

"We've got the national living wage, which is increasing from the 1st of April.

"Also, for employers, the national insurance contributions are also going up.

"Bringing those both together, that's increasing the cost of hiring staff by a lot.

"For example, a small business who employs nine minimum wage employees will actually see costs rise by more than 25,000 pounds in just one year."

The government says measures coming into force today include:

•   Increasing the National Living wage to £12.71 – a £900 boost for 2.4 million workers 

•   Increasing the National Minimum Wage to £10.85

•   Cutting energy bills by an average £117 a year for millions across the UK – locked in until end of June 

•   The Crisis & Resilience Fund starts running – put into place by £1bn of funding – which helps some households with things like heating oil 

•   A freeze on prescription prices

This follows an update to the public on 16th March where the Prime Minister set out five steps that were already in place on the cost of living. These were:

• Cutting the energy price cap until the end of June – thanks to last year’s Budget

• The Chancellor’s decision to extend the cut in fuel duty until this September

• £53 million for households that are most exposed to heating oil rises

• Building Britain’s energy security and independence

• Ongoing work towards a swift resolution of the situation in the Middle East

Prime Minister Keir Starmer said: “In an uncertain and volatile world, it is my government’s duty to protect the British people at home and abroad.

“I know the public are concerned about the conflict in Iran and what it means for them and their families.

“I want to reassure them that they have a government on their side, working with allies on de-escalation and bearing down on the cost of living.

“Today, millions of people up and down the country will see energy bills go down by £117, wages go up for the lowest paid, and more support will be available for people who need it most – because of the decisions this government has taken.

“But we must go further to bear down on costs, and that means pushing for de-escalation in the Middle East and a re-opening of the Strait of Hormuz.

"That is the best way we can bring down the cost of living for families and that is my focus.”

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