Retail group calls for ‘cautious’ approach to future national wage increases

The Association of Convenience Stores (ACS) wants a “cautious” approach to planned increases in the National Living Wage (NLW).

It is urging the government agency responsible for setting the hourly wage rate to consider extending the timetable for it to reach two-thirds of median earnings which is due to happen by 2024.

ACS chief executive James Lowman said: “The labour market is still feeling the impact of pandemic, with the phasing out of the furlough scheme and shortages or workers in some sectors.

“It is right that the Low Pay Commission take a cautious approach when setting wage rates for next year and review the timetable for the NLW rate reaching two-thirds of median earnings.

“Convenience stores provide local, secure and flexible employment to hundreds of thousands of people across the UK and throughout the pandemic we have seen how our colleagues have continued to work on the frontline to serve their communities.

“Many retailers have taken steps to reward staff for their exceptional work with bonuses and enhanced benefits.”

ACS research shows that 68% of convenience retailers have primarily responded to wage increases by taking lower profits, while 48% have increased prices and 44% have automated certain processes.

Almost two thirds of convenience retailers believe the planned NLW increase to £10.33 in 2024, would impact their business investment plans and could have a negative impact on the number of people they employ.