We know for many small employers any increase in wage costs will be very difficult in the current economic climate.

It was rumoured the Government would not be going ahead with an increase in the national minimum wage due this October, but it has recently announced a 7p an hour increase (or 1.2 per cent), bringing the adult rate to £5.80 an hour.

We know from discussions with clients, news of this relatively small increase was scant comfort for employers experiencing financial difficulties, putting further pressure on already hard-pressed businesses.

The British Chamber of Commerce had lobbied hard for a freeze on the current rate of £5.73 an hour until the economy improves. But it seems it has not been listened to.

The 7p rise may push some employers to the brink. It may seem a very small increase, but to many it will be the final straw in their economic survival.

The minimum wage is here to stay as the Conservative opposition has recently withdrawn a Private Members’ Bill which had been due for a third reading in the Commons. So it seems all parties are now committed to ensuring a minimum wage enshrined in law stays for the lowest paid.

But this is likely to be small comfort to the low pay groups petitioning for what they call a living wage for all workers, particularly those working in the hospitality and care sectors.

So, the pressure on both sides of the minimum wage debate continues to mount and will no doubt do so for many years to come.

Posted by Tara Lloyd
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