Concerns raised over future of island trainees

A politician has raised concerns over the ability for trainees to find work when a scheme to help companies adjust to an increased living wage comes to an end.

In March, the government introduced a £5.3m Better Business Grant to support firms transitioning to the living wage rate in 2025 and 2026, matching 50% funding for staff training.

Deputy Max Andrews fears companies will not be able to afford trainee wages when the scheme finishes, and so won't employ them.

He has asked States members to back his proposal for a review of how minimum wage increases have affected the way companies take on and keep trainees.

The Council of Ministers increased the minimum wage from £11.64 to £13 per hour on 1 April 2025.

The Better Business Grant is part of a £20m package of support for businesses from the Government during the transition to increased wages, over two years.

In his proposal, Andrews said the baseline wage had increased "considerably" and he wanted to ensure there were no "unintended consequences".

"Once the living wage package comes to an end, this could leave businesses in a precarious position," he said.

"It could mean that trainees may struggle to secure work due to the baseline wage hikes making it unaffordable for firms to recruit trainees."

His proposal would see the non-political body, the Jersey Employment Forum, review how increases to minimum wages since 2024 have affected the way companies take on and keep trainees.

"If there are unintended consequences, then we need to be aware of what those implications are," he said.

The earliest time the States can debate his proposal would be on 13 May.

If his proposal is successful, the Employment Forum would have until September 2027 to report back to the States with their findings.

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