Living Wage Introduction to Cost Jobs and Investment in Convenience Sector

The Association of Convenience Stores has criticised the Government’s decision to introduce a mandatory living wage for workers over 25 as a reckless measure that will have a significant negative impact on the sector.

ACS chief executive James Lowman said: “The introduction of a compulsory ‘Living Wage’ will have a devastating impact on thousands of convenience stores. This will lead to retailers having to reduce staff hours, work more hours in their business and ultimately cancel their investment plans. To introduce this measure with no consultation undermines the independent Low Pay Commission and is a reckless way to impose a massive burden on small businesses.”

The policy as described in the Budget document is as follows: The government will introduce a new premium for those aged 25 and over starting at 50 pence leading to a new National Living Wage (NLW) of £7.20 in April 2016. The government’s ambition is for the NLW to increase to 60% of median earnings by 2020, and it will ask the Low Pay Commission to recommend the premium rate in light of this ambition going forward. On OBR forecasts, this means the NLW is expected to reach the government’s target of over £9 by 2020.

This entry was posted by Chris on Wed, 08/07/2015 - 14:21