Publicans ready for latest minimum wage rise

Licensees say they are ready for the latest hike in the national minimum wage - the second largest since the wage was introduced in 1999.

From October 1, the minimum wage will increase by seven per cent to £4.85 per hour, or £4.10 for 19 to 21-year-olds, with a £3 rate introduced for 16 to 17-year-olds.

Regular increases in the minimum wage since its introduction in 2000 have hit licensees outside of the South East hardest, and there were fears that the new rise, up from £4.50, could be the most difficult to cope with yet.

But 76 per cent of licensees already pay above the minimum wage, according to The Publican Market Report 2004 - a survey of licensees.

Martin James, licensee at the Jolly Sailor in Sunderland, Tyne and Wear, is well prepared for the £4.85 wage.

"I pay my staff above the minimum wage so this won't affect me at all," Mr James said.

"I have a good retention of staff because I'm prepared to pay a bit more than some of my competitors in the area."

Kevin O'Connor, licensee at the Swan in Newton Abbott, Devon, said: "It's about staff loyalty as much as anything. If you pay your staff fairly then they reward you with that."

Tony Payne, chief executive of the Federation of Licensed Victuallers' Associations, said: "We agree that staff need to be looked after and support a move to pay younger people and get them interested in the trade."

He added, however, that it was a concern that the wage was currently rising above the rate of inflation.

One licensee, Jacqui Kilroy at the Merry Monk in Leeds, West Yorkshire, said the new wage could lead to cutbacks.

"If it's a case of reducing staff and working longer hours as a licensee then I have to do that, in this case just to make a living," she said.

The Department of Trade and Industry estimates that the rise will benefit 1.6 million low-paid workers in the UK and is in line with the government pledge to raise the minimum wage to £5.

The rise and rise of the minimum wage​

• October 2000​
  Minimum wage is £3.70 per hour
  Youth rate (18-21 year-olds) is £3.20
• October 2001​
  Minimum wage rises to £4.10
  Youth rate rises to £3.50
• October 2002​
  Minimum wage rises to £4.20
  Youth rate rises to £3.60
• October 2003​
  Minimum wage rises to £4.50
  Youth rate rises to £3.80
• October 2004​
  Minimum wage to rise to £4.85
  Youth rate to rise to £4.10