Low Pay Commission Launch Consultation on Future Wage Increases

The Low Pay Commission have launched their consultation on the level of the UK’s minimum wage and National Living Wage rates for 2017-18.

In the consultation, the Commission will consider the target given to them by the Chancellor of hiking wages to 60% of median earnings by 2020. The Commission is also looking for views on the impact that the proposed alignment of the Living Wage and Minimum Wage increases in April 2017.

Evidence submitted by ACS to the Low Pay Commission in 2015 showed that 65% of retailers reported that they would have to cut working hours or staff levels as a result of the introduction of the National Living Wage, with 62% planning to delay or cancel investment plans in their store.

ACS chief executive James Lowman said: “The convenience sector is currently facing significant increases in employment costs, not just through wage increases but also as a result of the introduction of Automatic Enrolment Pensions and the Apprenticeship Levy. Retailers cannot continue to absorb hikes in both the Living Wage and Minimum Wage without other areas of their business suffering as a result. We are extremely concerned about the impact on retailers in April 2017, when retailers will be faced with the third wage increase in their business in the space of 12 months and will be urging the Commission to reconsider their plans.”

ACS will be responding to the consultation in due course, and is also encouraging retailers to meet with the Low Pay Commission at their stores to show them the impact that Living Wage and Minimum Wage increases are having on their business.

For more information about arranging a visit, please contact Steve Dowling at steve.dowling@acs.org.uk

The Commission’s consultation will look at the following areas:

On the National Living Wage:

  • Evidence on the effect of the introductory rate of £7.20 on workers, employers, the labour market and the economy – including how firms and workers are adjusting and impacts on pay, terms and conditions, income, hours, progression, employment and competitiveness.
  • Views of the projected ‘on target’ rate for April 2017. The figure will change between now and the autumn as new pay data and forecasts are published but the Commission currently estimate it to be around £7.60 in April 2017, rising to just over £9 by 2020.
  • Views on the LPC’s proposed approach to making recommendations on the NLW.

On the other minimum wage rates (21-24, 18-20, 16-17, apprentices):

  • Views on how the Commission adjusts the level of the recommendations given that an April 2017 increase will come six months after the forthcoming October 2016 increases. This reflects the fact that the NLW was introduced on a different calendar to the other rates whose schedule is being revised to align with it.
  • Evidence on the impact of the rates on younger workers’ employment prospects including evidence on how widely the new 21-24 rate is used, and whether the NLW has affected the employment prospects of workers aged under 25.
This entry was posted by Leah on Thu, 14/04/2016 - 11:48