Minimum wage for 21-year-olds

Labour Party plans to extend the full adult minimum wage to 21-year-olds will hit pubs hard, trade experts warn.

Ministers also announced plans to extend the right to unpaid leave for fathers with children. It currently applies to those with children aged six or under, but is expected to be raised to off-spring aged up to 16.

The decisions were taken at a meeting of Labour's national policy forum at the weekend, where senior party members met with unions and Labour activists to decide future strategy. The proposals are expected to be included in Labour's next election manifesto.

The adult minimum wage applies to anyone aged 22 or older, but ministers told the forum they want the rate to apply to 21-year-olds if the Low Pay Commission continues to back the move.

Premium Bars & Restaurants chief executive Mark Jones said 21 is the "sweet spot" age of employees at town-centre pubs, bars and restaurants.

"This will disproportionately hit high-street bars and restaurants," he said.

Federation of Licensed Victuallers Associations (FLVA) boss Tony Payne said: "We do not see the need to extend leave for those with children as old as 16."

He did, however, support a reduction in the age for the minimum wage to kick in. The FLVA has already backed the move in its recent submission to the Low Pay Commission.

"We believe the age should be lowered. A lot of members already pay staff the full rate from the age of 18 once training is finished."