Mixed response in Kidderminster to planned living wage increase

Katy Hutchins said the National Living Wage increase would make a big difference to her family

The chancellor's announcement that the minimum wage will rise has been met with a mixed reaction in one Worcestershire town.

Katy Hutchins, who works part time in a card shop in Kidderminster, said it would have "a massive impact" on her ability to pay bills.

Food bank trustee Peter Holden called it "a step in the right direction".

But café owner Shannon Turnnidge said she was worried about the impact of increasing staff costs.

In his Autumn Statement, Jeremy Hunt said the minimum wage, known officially as the National Living Wage, would rise to £11.44 per hour, up from £10.42.

Mrs Hutchins, who started working part-time in a shop in the Swan Centre in October, said: "I think it's amazing, I think that's going to be a really big help."

She added the rise was more than she expected.

Shannon Turnidge (right) opened Tilly's Cafe in March with her sister Molly along with Shanae Yeomans

Tilly's Cafe was Shannon Turnidge's first business.

She opened it in March and said, while trade was picking up, she had been surprised by the cost of stock, electricity and salaries.

After the living wage announcement she said: "I've got three members of staff. That's going to be a lot more money, like another £30 a day that I'll have to be paying out".

Food bank trustee Peter Holden said the wait for the increase to come in would be difficult for some

Kidderminster food bank trustee Peter Holden said: "It's something of a step in the right direction in terms of increasing people's disposable income if they're on a universal credit or similar benefits."

But he said with with change not happening until April "people will find this winter particularly difficult".

The chancellor decided the rate will also apply to 21 and 22-year-olds for the first time.

It means a full-time worker aged 23 on the wage would receive a rise worth £1,800 a year. A 21-year-old would see an effective £2,300 annual rise.

"The National Living Wage has helped halve the number of people on low pay since 2010, making sure work always pays," Mr Hunt said.