Caller says he’ll shut business if minimum wage rises to £15 an hour

24 August 2022, 21:47 | Updated: 24 August 2022, 23:04

'If this minimum wage goes to £15, I will have to shut my business down.'

This caller tells Rachel Johnson that the “margin is very little and it's hard to survive” if the minimum wage increases to £15 an hour for small business owners.

Trades Union Congress general secretary, Frances O'Grady announced today that the minimum wage should be raised to £15 an hour as “it’s time to put an end to low-pay Britain" for a decent standard of living.

Caller Sam in Redbridge said: “If the minimum wage goes to £15, I will have to shut my business down because there is no way I can afford to pay my staff £15 an hour.

“And yet to make money because the margin is very little, and it's very hard to survive, and you will end up being government paying back the Universal Credit to these guys and it's gonna go back to the government.”

What is the current minimum wage?

Rachel said: “In terms of where you have to pay Jobseeker's Allowance?”

When asked about the allowance, Sam continued: “All my employees were claiming benefits before, now they all are working, actually its a full-time work and they are happy.

“I don’t pay the minimum wage of £9.50 but I pay £10.50 and they are happy.

Sam continued explaining his ordeal, saying: “If I put any more prices up to my customer then I will lose my customer, and eventually I will have to shut my business down.

“I feel it's going to be very very unfair for the small business.”