Flexible working 'will cost small businesses £61 million'

Changes to the flexible working law later this year will result in small businesses losing up to £61 million in costs, it has been claimed.

The right to request flexible working is to be extended from parents with children under the age of six to parents with children under the age of 16 in April.

However, the Federation of Small Businesses (FSB) believes that small firms in the UK will not be able to cope with the change and is calling for the government to delay passing the law.

The organisation also feels that small businesses will not be able to cope with other changes to legislation, like increasing staff holiday and switching the gas regulator from Corgi to Capita.

"In these tough economic times, small businesses are already battling with red tape; with the burden and confusion of existing legislation," said the FSB's national chairman, John Wright.

"The government should wait until October to see if the economy is in a stronger position to cope with this added pressure."

A survey by the Chartered Management Institute last year found that 57 per cent of its members believe the government should adopt a 'flexible working for all' policy.