The Association of Convenience Stores (ACS) has urged the Low Pay Commission (LPC) to consider pausing national living wage uplifts.
This comes after Chancellor Jeremy Hunt announced that the national living wage will rise to two-thirds of average earnings.
The move would see over two million workers on low pay set to benefit from the increase.
Speaking at the Conservative Party Conference, the Chancellor said he is committed to accept the LPC’s recommendations which will be announced in November.
Based on the Low Pay Commission’s latest forecasts, this would see the national living wage increase to over £11 from April 2024 and would mean the annual earnings of a full-time worker on the national living wage will increase by over £1,000 next year.
People currently aged 23 and over are eligible for the national living wage which currently stands at £10.42 per hour.
The announcement means a full-time worker on the national living wage will be over £9000 better off than they would have been in 2010.
Each year, national living wage and the national minimum wage rates are decided by the government based on recommendations from the LPC.
James Lowman chief executive for ACS told Convenience Store: “It is right that the Government accepts the recommendations of the independent Low Pay Commission, which are put together after consultation with different sectors about the impact of rises, including the convenience sector. However, after the current target of two-thirds of median earnings is met, the remit of the Commission is currently uncertain. For future recommendations, we urge the Commission to consider pausing wage uplifts if they are shown to have a negative impact on employment and investment.”
Back in July, the ACS gave oral evidence to the LPC calling for a cautious approach to future national living wage rates and consideration of the unique challenges facing employers at the current time.
James Lawson urged caution on further national live wage increases and highlighted the unique and significant challenges face by convenience retailers because of cost-of-living crisis, increased energy, supply chain and other regulatory challenges.
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