Workers say minimum wage rise is double-edged sword
BBCYounger workers in Gloucestershire say upcoming increases to minimum wage will have little impact on how much money they take home each month.
From April, the hourly rate for over-21s will rise by 50p to £12.71, with workers aged 18-20 seeing an 85p rise to £10.85
Some business owners in the county have said they are unable to absorb the rise, and will have to reduce roles and hours for staff.
In a statement a Department of Trade spokesperson said the increase will "put more money in low-paid workers' pockets", and they are "confident" it will "not excessively burden businesses".
Ella Williams works behind the bar at the Ship Inn and Old Neighbourhood pubs on the outskirts of Stroud.
The 18-year-old is saving to study midwifery and said the change will be both a benefit and a disadvantage.
"It's good to have a minimum wage rise, but it's going to push me in to paying more tax on my pay check so it doesn't make [any] difference," she added.
"At the moment I'm saving up to go to uni, so it would be good not to have that cut down."
Ella's boss, Wesley Birch, said the hospitality industry was struggling and he had not taken a wage since May.
The landlord has pledged to do everything he can to protect his staff from the pressures of increasing bills and rates, but said he will still have to make cuts.
"The only option available to us really is to reduce the number of hours available to the staff in order to keep the doors open," he added.
"With these increases coming in so thick and fast, unless reforms are put in place, we are faced with a mass extinction of the pub industry."
'Black and white'
In last month's Budget, Chancellor Rachel Reeves announced hourly minimum wage rates will increase by 85p to £10.85 for 18 to 20 year olds, and by 50p to £12.71 for over 21s next spring.
That's on top of a 6.7% rise for over-21s and a 16.3% rise for 18 to 20 year olds respectively last year, when there was also a rise in employers' National Insurance contributions.
From April, full-time minimum wage jobs will pay almost the same as entry-level graduate roles, which this year were at an average of between £25,000 and £28,000 in south-west England. University leavers also have to pay course fees and loans.
PAErica Messineo is studying law at the University of Gloucestershire.
While she welcomes the increase in minimum wage, she is concerned about the general cost of living and her immediate earning power once she graduates.
"I'm doing my masters next year and that's additional fees added to my student loan, and when you start working you really start very small, you don't get £25,000 immediately," she added.
Manager of Quayside Wealth Management, Alex Knell, said the increases will bring about intergenerational changes to disposable income for younger minimum wage workers and their parents.
"[Younger workers] will have more disposable money, the likelihood is they'll be spending it more on impulsive purchases which can cause inflation to increase," he added.
"And if they're living at home, they'll probably have more expendable cash than their parents will have."
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