The National Living Wage and National Minimum Wage rates are increasing today, following recommendations made to the Government by the Low Pay Commission (LPC).
From today, the new rates are as follows:
- The National Living Wage for ages 25 and above - up 6.2% to £8.72
- The National Minimum Wage for 21-24 year olds - up 6.5% to £8.20
- For 18-20 year olds - up 4.9% to £6.45
- For under 18s - up 4.6% to £4.55
- For apprentices - up 6.4% to £4.15
The Chancellor has indicated that he will recommend a target of two thirds of median earnings for future wage rates by 2024.
Bryan Sanderson, Chair of the Low Pay Commission, has warned that that an “emergency brake” on wages increases may be necessary if the Covid-19 outbreak causes sufficient damage to the economy. The Low Pay Commission monitors the labour market and the impact of the National Living Wage closely, advise on any emerging risks and if the economic evidence warrants it can recommend that the government reviews its target or timeframe.
ACS chief executive James Lowman said: “Increases in the National Minimum and Living Wage rates have a significant impact on retailers every year, so during this unprecedented uncertainty, it is important that the Low Pay Commission gives serious consideration of an ‘emergency brake’ to revise its wage projections to 2024. We will continue to work with the Low Pay Commission to outline the pressures that retailers face when dealing with increased employment costs.”
ACS provided evidence to the Low Pay Commission about the impact that increases to the National Living Wage has had on convenience retailers and their response including reducing the number of paid working hours in their business and independent retailers having to take on more hours in the business themselves.
