Children’s activity businesses are also struggling. Emily Walsh is the owner and manager of Tumble Jacks play centre in Stockport, where parents meet for coffee while little ones play and have birthday parties.
“We’ve seen massive reductions in our party numbers,” says Emily. “Instead of inviting the whole class, they’ll invite 15 children.
“And that is simply because people don’t necessarily seem to have the disposable income.”
While visitor numbers are down, Emily’s staffing and business costs are up.
Minimum wage for workers aged 21 and over will rise from £12.21 an hour to £12.71 in April. The government says raising the minimum wage is an important part of dealing with the cost of living crisis, but some employers worry it means they will have to cut staff numbers.
Together with a rise in National Insurance contributions and a drop in the income tax threshold, the cost of hiring a full-time minimum wage worker has risen by about £3,400 between 2024 and 2026, according to the Centre for Policy Studies., external
“My payroll when I opened was approximately £8,000 per month, it’s now hitting £18,000 in four years,” says Emily.
She’s cut her staff from 18 down to 13 and says she is working 60-70 hours per week, paying herself less than minimum wage.
A discount to business rates still in place from Covid will also end in April.
“Somehow I’ve got to find an extra £7,500 a year out of nowhere,” says Emily.