The equestrian industry is facing “the perfect storm” as minimum rates of pay will rise further than predicted next spring.
Businesses face soaring wage bills on top of the well-documented ongoing issues, including high interest rates and increased pressure on everyone’s finances.
There are also concerns that some in the industry have failed to move with the times over the years – they have been warned that non-compliance with the law is not an option and that HMRC is cracking down.
The living wage – the minimum rate of pay for people aged 21 and over – will rise from £11.44 to £12.21 an hour in April. The rate for 18- to 20-year-olds will increase from £8.60 to £10, as part of the phased move to a single hourly rate. Apprentices’ minimum wage will be boosted from £6.40 to £7.55.
This will mean those on low incomes will have significant pay rises. But there are serious concerns about what this will mean for businesses’ viability, and if it may lead to a rise in false self-employment, and a narrowing gap in wage progression between less and more experienced staff.
Equestrian Employers Association president Tullis Matson told H&H he is “really concerned” about the effects.
Mr Matson stressed that the workforce in the equestrian industry needs to be properly paid, and that businesses will need to reflect on where to find the money.
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“It’s like the perfect storm for the industry, which is quite worrying,” he said. “This really is a tricky time for the equine industry. We will fight our way through, but I worry about the impact on certain businesses and individuals.”
He added: “The belt is already tight and it can’t go any tighter.”
National Insurance (NI) contributions for employers will rise from 13.8% to 15% on workers’ earnings. The threshold at which employers start to pay NI will change from £9,100 per year to £5,000 per year, for each employee. But the employment allowance – the amount employers can claim back from their NI bill – will increase from £5,000 to £10,000.
British Grooms Association chief executive Lucy Katan warned that the equestrian industry is already behind when it comes to good employment, so the impact of this budget will be keenly felt.
“By bringing it down to a 40-hour week, you reduce the impact substantially.”
She added: “They’re investing in HMRC, so we are going to see many more investigations – and targeted investigations – and our industry is already flagged. If you are an employer that is not adhering to the national minimum wage, you are going to get found out.”
What’s the difference?
Rough examples based on a 50-hour working week (wages alone, not including increased pension contributions or NI, so overall totals will be higher).
Age 21, living wage (£11.44/hr rising to £12.21/hr):
Current: £29,744
From April: £31,746
Age 19, minimum wage (£8.60/hr rising to £10/hr):
Current: £22,360
From April: £26,000
Example yard: two workers over 21, one 19-year-old, one apprentice:
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Lucy is an experienced news journalist, reporter and presenter. Since joining the Horse & Hound team in 2015, Lucy has reported from major global sporting events including the Tokyo Paralympic Games and multiple European Championships, as well as Badminton, Burghley and London, to name a few. She has covered current affairs and sports news across the full spectrum of equestrian disciplines and racing, as well as human and equine welfare, industry news and court cases.
