Salon industry calls for apprenticeship minimum wage reform

Three quarters of salon owners want to see the apprenticeship minimum wage reformed so that it applies to all trainees, regardless of their age, the NHF has said. A survey of members as part of the NHF’s submission to the Low Pay Commission, the body that recommends future minimum wage rates, found across-the-board support for the idea of a “single age” apprentices’ wage. Currently,  the apprentices’ wage (£2.73 an hour from 1 October) only applies to trainees aged 16-18 or over 19 in the first year of their apprenticeship, after which they revert to the age 18-20 rate (£5.13 from 1 October). But, as apprenticeships normally last for two years, the NHF has long argued this means older would-be hairdressers, such as those who have stayed in school until age 18, find it much harder to enter the industry, as salons are reluctant to take on trainees who will be more expensive in their final training year due to the higher NMW rate. In June the Department for Business, Innovation and Skills asked the commission to look at how the apprentices’ wage could be simplified, and the NHF’s submission is part of this wider consultation process as well as setting out the industry’s position on future rates. Nearly eight out of 10 salon owners (78%) urged the commission to leave minimum rates unchanged next year, with a similar percentage (80%) calling for the apprentices’ wage to frozen for 2015. “Until we see concrete evidence that the recession has ended and recovery is truly underway across the whole of the UK, it is difficult to see how the minimum wage can be increased more quickly or at a rate above inflation,” said NHF president Paul Curry.  “Salons are telling us conditions on the high street remain tough and, as a labour-intensive industry, constant increases in the minimum wage hit salons hard. Hilary Hall, NHF’s chief executive added: “Changes to apprenticeship funding, including an employer contribution, are set to come into force next year and, further down the line, pensions auto-enrolment is expected to add to the costs salons face. All these factors mean we urge the commission to keep minimum rates unchanged in 2015.” For more informative and inspirational business news and features subscribe to HJ