ACS

The Department of Business, Enterprise and Regulatory Reform has responded to a letter sent to them by the Low Pay Commission on 14 January requesting an extension to its deadline for making recommendations for the minimum wage levels for 2009/10 and 2010/11. The Government has granted the request with the deadline being extended from the end of February 2009 to 1 May 2009.

Commenting on the extension, Professor Sir George Bain, Chairman of the Commission, said: "The Low Pay Commission has always based its recommendations on research, evidence and analysis of economic data. This year, the National Minimum Wage faces up to its first recession. By delaying its report until 1 May, the Commission will have access to two month's additional data, including the Bank of England's next Inflation Report, employee job figures for December 2008, GDP figures for the fourth quarter of 2008 and updates on average earnings. The delay will not have an impact on the planned date for implementation of the new rates, 1 October 2009."

ACS Chief Executive James Lowman said: “We are pleased that the Government has given the Low Pay Commission sufficient time to make its recommendations in these extraordinary financial times. It is vital that the Commission has as full a view as possible on the economic conditions of the UK. The Low Pay Commission needs to reflect in its recommendations the financial burden that inflation busting minimum wage increases place on businesses”.

ACS gave evidence at the Low Pay Commission in December, alongside independent retailers from within ACS membership, who were able to give insight into the impact minimum wage has on their businesses and ability to employ staff.