Small business impact added to minimum wage formula
The government has changed the remit of the Low Pay Commission so that it will have to take into account the competitiveness of small businesses when making its recommendations for minimum wage rates for 2011.
This year’s new national minimum wage rates will come into force on October 1 and have been set at £5.93 per hour for 21s and over, £4.92 for 18-20 year olds and £3.64 for 16-17 year olds.
James Lowman, chief executive of the Association of Convenience Stores, said: “While local shops support the minimum wage, and strive to pay above this rate, it has become increasingly difficult to maintain staffing levels with the year-on-year above-inflation increases.
“It is a good step forward for the government to acknowledge the impact of the minimum wage on small firms.”