WIREDGOV

The CBI commented on the announcement of changes to the National Minimum Wage rates from October 2012, recommended by the Low Pay Commission (LPC), and accepted by the Government yesterday.

The adult rate will increase by 1.8% from £6.08 to £6.19 an hour and the youth rates will be frozen at their current levels.

Katja Hall, CBI Chief Policy Director, said:

“Businesses will welcome the approach taken to this year’s National Minimum Wage rates. The moderate rise in the adult rate and the freeze in the youth rates will come as a relief to the many hard-pressed firms right across the country.

“Retailers, care homes, hospitality, and other consumer-facing businesses are experiencing particularly tough conditions, so it’s good that the LPC listened to the CBI’s advice and made sure its recommendations preserve jobs and support the fragile recovery.

“The LPC also listened to businesses on the youth rates. With youth unemployment at its highest level for a generation, we must take great care not to price young people out of a job. Freezing the minimum wage will help reduce one of the barriers to employers deciding whether or not to take on a young person.”

The CBI is the only business organisation on the LPC.