The Business Secretary has provided instructions to the Low Pay Commission setting the remit for its review and recommendations for the national minimum wage rates in 2015. In the remit the Minister has called for the Commission to ‘look at whether the economy is strong enough to support above inflation rises.’
ACS Chief Executive James Lowman said: “We are disappointed that yet again the Business Secretary has set out a remit for the Low Pay Commission that is based on a leading presumption that rates should increase. Politicians from all sides are having their say on what the minimum wage should be and we fear this could undermine the independent and robust process that the Commission has developed over a number of years.
“We will be conducting a detailed survey of our members and will provide a clear picture of the impact of current and future rises in the minimum wage on local shops. We know from previous years that when the minimum wage increases, retailers are forced to cut staff hours and make other cost reductions in their business.”
The Commission is due to make its recommendations to Government in February 2015.
