ACS

The Prime Minister Gordon Brown has announced that from 1st October 2008 the minimum wage will increase by 3.8%, well above the 2.2% inflation rate. This will mean that the adult National Minimum Wage (NMW) rate will rise from £5.52 to £5.73. The rate for 18-21 year olds will also increase from £4.60 to £4.77, while the 16-17 year old rate will rise from £3.40 to £3.53.

Business Secretary John Hutton said, “When the National Minimum Wage was launched the main rate was £3.60. Since then it has increased at substantially more than the rate of inflation.”

This latest rise means that since the minimum wage was introduced in 1999 it has risen by 59% which was more than double the rate predicted.
ACS Chief executive James Lowman said: “To expect businesses to deal with these above inflation increases year on year is unacceptable. We support the principle of a minimum level below which wages should not fall, but the continual increases of this level are not sustainable or fair to businesses.

“This is particularly true in a year when the Government has received so much criticism from many different professions for their own low public sector wage increases. Teachers pay will increase by 2.45%, and police and nurses’ pay will increase below the 2.2% inflation rate. If the majority of workers in the country are receiving inflationary rises of around the 2% mark then why should small businesses such as convenience stores that already have to deal with the burden of increasing regulation have to foot the bill? Why are we expected to afford pay increases greater than those the Government is prepared to pay itself?

”We have given evidence to the LPC face-to-face and in writing. While we believe this has helped to moderate the increase to a lower level than in some previous years, we remain disappointed that the NMW continues to rise at this rate.”

Contacts:

Shane Brennan Public Affairs and Communications Manager
01252 515001/ 07921 372 978

Nina Collins Communications Coordinator
01252 515001

Michael Saxton/ Grappa PR
020 7602 9222


Notes to Editors:

1. ACS (Association of Convenience Stores) is the voice of local shops, representing over 33,000 convenience stores. ACS helps local shops thrive through lobbying, support and networking opportunities.
2. View the BERR Press Release online here: http://www.gnn.gov.uk/environment/fullDetail.asp?ReleaseID=357883&NewsAreaID=2&NavigatedFromDepartment=True