Minimum Wage set to increase from 1st October
Despite Business Secretary Vince Cable’s claims that: “Nobody in the country should be paid less than the minimum wage”, Ian Murray MP, Labour’s shadow minister for employment relations, consumer and postal affairs, has urged the government to do more on enforcing the standardised rates and cracking down on unscrupulous employers breaking the law.
Increases will include 2% to the Adult rate and 1% to all other rates.
Response from Business:
Dr Adam Marshall, director of policy at the British Chambers of Commerce, explained: “We are disappointed that the government has chosen to raise the adult national minimum wage rate by 1.9%, an increase that is over 50% higher than current average pay growth.”
“While the pressures of inflation are affecting many people, including the lowest-paid, the scale of this rise adds significantly to business costs, most of all by contributing to broader pay inflation. It will also make some employers less inclined to hire additional members of staff.”