Small independent retailers are expressing their concerns at the news that the National Living Wage could increase by almost 6% to £12.10 an hour from April next year.
In its latest report, the Low Pay Commission (LPC) said that wages need to rise by about 5.8% to align with earnings growth - significantly higher than its March estimate of 3.9%.
Responding, Mo Razzaq, the national president of the Federation of Independent Retailers (the Fed), said: “Small independent retailers are the backbone of their communities and as responsible employers we want to ensure we’re paying a fair wage to staff. But raising the national living wage to as much as £12.10 would be a step too far. As well as paying our staff more, we must pay more in national insurance and pensions, at a time when many other costs, including energy, are rising.
“There is no easy way for small retailers to combat these increases. As so many of the products that convenience store owners are pricemarked, we cannot pass these costs onto our customers. The only solution available is to reduce staff hours and numbers and, somehow, take on even more hours ourselves.”
The proposed increase was projected after the Government updated the LPC’s remit to formally factor in the “cost of living” when undertaking the annual review into the minimum wage. Its recommendations will be delivered next month.
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