With effect from 1 October the National Minimum Wage will rise to £4.85 per hour. Many small businesses have expressed concern over the rise of 8%, more than double the current rate of inflation and above the rate of increase on earnings.
Our View
Having a National Minimum Wage is beneficial for those people in lower paid, possibly part-time employment. We have seen many UK companies outsource their administration and call centres to Asia and this is always a concern for the future, especially if the minimum wage continues to rise at this level.
We believe the National Minimum Wage should keep pace with general earnings growth as a maximum.