Minimum wage study under way
EMPLOYERS of low-paid workers, those on low wages, training providers and representative bodies have until September 26 to join in a consultation on the national minimum wage.
The Low Pay Commission, which advises the Government on the NMW, has launched the public consultation which will make recommendations on levels from October 2015.
John Allan, chairman of the Federation of Small Businesses, said: ‘Now the economy is turning a corner, it’s important that we start to see real wage growth, particularly for low income earners.
‘However, raising the minimum wage too far and fast could create serious problems for firms in sectors such as care and retail.’
The NMW varies from £6.31 for workers aged 21 and over down to £2.68 for apprentices aged under 19 or in the first year of their apprenticeship.
The Commission will take into account the state of the economy, employment and unemployment levels and policy, and it will consider if ‘we are entering a new phase where real increases in the NMW can be afforded’.
Meanwhile, a report from the Child Poverty Action Group last week revealed parents both working full time on the minimum wage do not earn enough to live on.
It found that couples earning the minimum are 18 per cent short of the sum needed for a minimum standard of living.
Last week, a cafe in America came under fire for a 35-cent ‘minimum wage fee’ that appeared on a customer’s bill.