The Association of Convenience has urged the Low Pay Commission to review the sustainability of the government’s target of a rise in the National Living Wage to 60% of median earnings by 2020.
Responses from the 2016 ACS National Living Wage survey have shown that retailers are likely to face negative consequences in their business if wage rates continue on their planned trajectory to 2020:
- 90% of retailers said that they will reduce the staff hours in their business
- 81% of retailers said they would consider reducing the number of staff they employ
- 79% of retailers said they would reduce their business expansion plans
Speaking to the Commission, ACS chief executive James Lowman said: “The introduction of the National Living Wage has led to retailers delaying investment plans, reviewing the number of staff hours in their business and ultimately, reducing the numbers of staff that they employ.
“We have serious concerns about continuing increases in the National Living Wage that are based on a moving target. Retailers need certainty to be able to plan for the long term, which is why we believe that the Commission should review the sustainability of a 60% of median earnings target.”
The government target for the National Living Wage to reach 60% of median earnings by 2020 is currently predicted to be around £9.03 per hour, although this is likely to change in coming years.
The ACS is currently preparing its full written submission to the Low Pay Commission’s evidence gathering process on the future of the National Living Wage and minimum wage rates. If you have any feedback on how the National Living Wage rate has affected your business, please contact steve.dowling@acs.org.uk
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