The National Minimum Wage will increase by 3% to £6.70 an hour from October 1, the government has announced.

The above-inflation rise was recently recommended by the Low Pay Commission, but the Association of Convenience Stores has warned that the rise would have a negative impact on staffing and investment levels in c-stores.

ACS chief executive James Lowman said: “We are disappointed with the increase in the National Minimum Wage above inflation, above average earnings growth, and above public sector pay award levels.

“Our research has clearly shown that retailers have little choice but to reduce staff hours and delay further business investment when the minimum wage is increased.”

However, he expressed relief that the government had not buckled under political pressure and gone beyond the recommendations of the Low Pay Commission.

The new rates, in effect from October 1 2015, are as follows:

  • · Adult minimum wage rate: £6.70 (from £6.50)
  • · Youth rate (18-20): £5.30 (from £5.13)
  • · Youth rate (16-17): £3.87 (from £3.79)
  • · Apprentice rate: £3.30 (from £2.73)