Living Wage

Trade bodies welcome plans to abandon £9 living wage

By James Wallin

- Last updated on GMT

Wage proposal: trade bodies pleased with pay structure recommendation
Wage proposal: trade bodies pleased with pay structure recommendation

Related tags: Low pay commission, Minimum wage

Trade bodies for the hospitality sector have welcomed recommendations from the Low Pay Commission, which confirmed the abandonment of the £9 political figure for the national living wage (NLW) by 2020.

The report sets out plans for the NLW and the national minimum wage (NMW) to be set by the Low Pay Commission on the basis of hard evidence. Going forward, the NMW will be pegged around average earnings with the NLW target to be 60% of median earnings by 2020, which is likely to see a headline rate of £8.40-£8.60 by 2020.

In its submission to the commission, the Association of Licensed Multiple Retailers (ALMR) worked with the British Hospitality Association (BHA) to commission research.

ALMR chief executive Kate Nicholls told The Morning Advertiser​'s sister title MCA​: “The ALMR and the BHA have worked closely together to set out to Government ministers the broader effect of wage policy on investment in the sector and to set out how we would like to work with them to prioritise investment in our people in a wage that does not jeopardise our strong, positive record of job creation.

“It is very good news indeed that the setting of the rate for both NMW and NLW will be in the hands of the independent Low Pay Commission and will be done by taking into account economic circumstances and the impact on jobs.

"This means that we can have the assurance that increases will be sustainable, will be economically informed and that we will be consulted as part of the rate-setting and informed of increases in a timely fashion.

“It means that we can plan for the next two years knowing that wage rates will reflect the bumpy ride being predicted for the UK economy and this positive outcome is as a direct result of the joint campaign and having a strong, united retail voice.”

Related topics: Legislation

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