Thousands of teenagers are earning poverty pay of just £1.25 per hour, the retail union Usdaw has claimed.

The trade union has uncovered evidence that some teenagers work a full 40-hour week, including periods of weekend work.

A riding school assistant in Liskeard, Cornwall, earned £1.25 per hour, a car valet in Warrington, Cheshire, earned £1.50 per hour and a sheet metal worker in Stoke-on-Trent, Staffordshire, earned just £1.62 an hour.

Usdaw has called for a minimum wage of around £3 an hour for workers aged between 16 and 17 – 80% of the rate paid to 18-year-olds.

Business groups, which have already spoken out against the increase in the minimum wage earlier in Autumn, are likely to oppose the proposals.

A survey by online recruiter Hotrecruit revealed that nearly half of small businesses opposed the increase and 5% claimed the hike could put them out of business.