The government’s announcement that it will introduce a minimum wage for 16 and 17-year olds, has caused unease among leisure industry companies.

Traditionally, the leisure industry – especially the hospitality sector – employs thousands of young people every year, often in small and medium-sized business operations.

The Federation of Small Businesses (FSB), which acts as the voice for around 20,000 small businesses within the leisure industry, has welcomed the minimum wage with slight reserve.

David Bishop, from the FSB, said: “The majority of the FSB-affiliated companies welcome a sensible level of minimum wage. However, for our businesses, the issue is one of differentials.”

“A minimum wage of £3 per hour for 16 to 17-year olds is reasonable, but what small businesses, often operating with little monetary flexibility, are then faced with, is how to make sure the pay gap between senior staff and the part-timers remains considerable enough to keep the full-time staff happy,” he said.

"This will cut out the worst examples of wage exploitation and mean more significant increases can take place in future years.” he said.