|
News Index
Next
Previous
The Forum of Private Business (FPB) has found that many firms will have to push
up their prices as a direct result of the latest hike in the national minimum
wage.
In a snapshot survey of around 100 businesses across the UK, the FPB found that
40% of respondents thought they would have to increase prices.
The FPB campaigns manager, Victoria Carson, commented: "The evidence is that
these constant increases, coupled with changes in maternity rights and plans to
extend holiday leave, are pushing up prices.
"Little is being done to encourage smaller firms to take on more staff either.
"The problem with increasing the National Minimum Wage at a rate greater than
the increase in average earnings, is there is greater pressure on small
employers to give higher pay rises to their higher earners.
"If they don’t, they are left with disgruntled workers who feel that their
skills deserve a greater financial reward than those colleagues who perhaps have
fewer skills, but are earning much closer to their pay bracket than ever
before."
The Low Pay Commission consultation on the rise in the national minimum wage
ends on 20th September.
The rise itself will come into force on 1 October, with the adult rate
increasing from £ 5.05 to £ 5.35 per hour.
Rates for 18 to 21 year-olds and 16 and 17 year-olds will jump to £ 4.45 and £
3.30 per hour respectively.
Of firms who responded to the survey, 70% said they would not be hiring more
employees because of the impact of the increase in the national minimum wage,
whilst 4% said they would have to make staff redundant. The pressure on owners
of smaller firms has increased.
Source:
RedAlert
|
