Minimum wage

The minimum wage for 16 and 17-year-olds increased on Friday.

Now, 18 to 21-year-old workers will be entitled to £4.10 per hour and workers aged 22 years and older should receive at least £4.85 per hour.

Stakeholder Response: British Youth Council

Louise King, senior policy officer at the Children's Rights Alliance for England which includes the British Youth Council, said: "We are delighted about the extension of wage protection to younger workers. However, we urge the government to increase the minimum wage rate for 16 and 17 year-olds.

"By setting such a low rate, the government has missed an opportunity to make a significant difference to the lives of the poorest young people."

Stakeholder Response: Forum of Private Business

Nick Goulding, chief executive of FPB, said: "Our main concern is that the across the board imposition of a minimum wage for younger people could actually act as a barrier to employment opportunities for them.

"We should be encouraging business to attract young and dynamic employees, yet if the costs become prohibitive the opportunities will necessarily diminish as a consequence.

"Although young workers may be able to contribute 'equivalent value' to a business as older employees, often they lack the experience and skills of their colleagues.

"As such the incentive to employ them diminishes and may contribute to a reduction in young people choosing to join the world of work and instead opting to attend university, with all of the attendant debt such a move creates for the individual."

Stakeholder Response: Institute of Directors

A spokesman for the IoD said: "Our members have no particular strong feelings over the new school-leavers minimum wage rate.

"Our broader concern however is the continued over-indexation of the minimum wage rate above normal wage inflation. The consequences for the economy in a downturn could be severe."

Stakeholder Response: British Retail Consortium

Sarah Winterton, director of public affairs at the British Retail Consortium, said: "The BRC welcomed the introduction of a national minimum wage for 16 to 17-year-olds set at £3.00.

"Retailers recognise the value that this age group can bring to their companies, from their willingness to work flexible hours to providing the desired image for their products and this level will encourage investment in young staff.

"Retailers are a major employer of 16 to 17-year-olds but this age group are restricted in the work they are allowed to do.

They cannot for instance sell alcohol, petrol or operate certain machines. As a result 16 to 17-year-olds cannot do the full range of tasks that employees over 18 can, restricting the value they can create."

"Many retailers choose to pay above the minimum as they want to be able to attract the best employees, but continually increasing the minimum for 16 to 17-year-olds will begin to impact heavily upon small and then large retailers and may force retailers to curtail their employment of 16 to 17-year-olds and the provision of training."