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Call to freeze minimum wage

hands holding money - inflation has risen, but the Bank of England faces calls not continue with its quantitative easing programme
The National Minimum Wage has increased above the rate of inflation since its introduction, and should be frozen to allow retailers breathing space, the Association of Convenience Stores (ACS) has said.

The group aired its concerns as the Low Pay Commission - set up to advise the Government on the minimum wage - completed the last of its evidence-gathering visits. In this year's series of six visits across the country, the commission has focused on groups including apprentices, young people, agency and migrant workers and those in child and social care.

During the last visit on Wednesday, the commission spoke with independent Bristol retailer Chris Ray, who told commissioners that he supported the minimum wage, but that rises meant that it was becoming "difficult to pay workers above the bare minimum".

"The National Minimum Wage as it stands is about right in my view as an employer, but the big issue for me is the continued increase in holiday entitlement," said Mr Ray.

"If I were able to pay my staff in lieu of taking time off, it would be a much better system for both me and them."

Commenting on the visit, ACS chief executive James Lowman said that it was clear that retailers supported the minimum wage.

"However," he added, "in the 10 years since its inception, [it] has increased by an inflation-busting 60%.

"We believe that the right decision is to freeze the minimum wage, and we hope that the Low Pay Commission will recommend these measures in their report to the Government."

IMAGE David Cheskin/PA Wire

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