Wage Concerns Rise for Hospitality as New Minimum Rates Take Effect
The wage increase announced for 1 April 2026 is drawing sharp concern from hospitality businesses, with one Hagley restaurateur warning it could make hiring harder at a time of rising costs. Harry Parkinson, owner of Plates and Grapes in Hagley, said the change is part of a “challenging time” for businesses and could push employers to take on fewer staff. The Low Pay Commission says the rise was recommended after considering evidence on jobs, while ministers say the increase is aimed at helping the lowest paid.
Hospitality firms warn of hiring pressure
Parkinson said the higher hourly rates could make it less likely for businesses like his to employ people who do not yet have the skills and need training. He said: “With the rising costs it’s making it less likely for people like myself to be able to afford to employ people who haven’t got the skills and train them up to the standard we need. ” He also said the change “just forces you to take less staff on. ”
The government has set new hourly rates that raise pay by 50p to £12. 71 for workers over 21, by 85p to £10. 85 for those aged 18 to 20, and by 45p to £8 for under-18s and apprentices. Parkinson, who opened his new tapas bar on Wednesday, said building consistency “feels more difficult than it ever has been. ”
Wage debate reaches ministers and employers
The wage rise has also prompted comments from senior figures on both sides of the debate. Prime Minister Sir Keir Starmer said wages were going up “for the lowest paid, ” but added that the government “must go further to bear down on costs. ” Business Secretary Peter Kyle defended the increase, saying: “I am not going to progress our country and have it moving forward on the back of screwing down on low-paid workers. ”
Lord Richard Harrington, chairman of Make UK, said employers do not want to exploit workers or pay them less than they can live on. He added that businesses want to hire young people and apprentices, but that it is “a lot of money” to pay for an 18-year-old who is not fully trained. The Low Pay Commission, which recommended the rises, said earlier minimum wage increases had “not had a significant negative impact on jobs. ”
What the official case says
The Low Pay Commission said the wage changes follow recommendations made in October 2025 and come into force on 1 April 2026. Its report says the measures are meant to assess immediate effects on household incomes and the number of jobs affected, while also setting out the commission’s evidence-gathering plans for the rest of the year.
The official case for the new rates is that higher pay at the bottom of the labour market should support workers who are least paid, even as some employers warn about pressure on staffing and training. For hospitality businesses, the debate over wage levels is now landing alongside broader cost concerns, and owners like Parkinson say the strain is already being felt. The next phase will be watched closely as the new wage rates take effect and businesses adjust.
