Almost one in eight newsagents will close due to the national living wage, according to an NFRN survey.
Responding to the Low Pay Commission’s consultation on the national minimum wage and upcoming introduction of the new national living wage (NLW), the Federation has shared the findings of its latest survey of members, detailing their experiences and their predictions for their businesses as a result of the higher wage rates. Twelve per cent of members that responded to the survey announced that the NLW will result in them closing their business down.
NFRN National President Ralph Patel said: “Normally our members are optimistic despite the ever-increasing burdens placed on their overheads, but our findings show they are clearly under extreme pressure and the announcement of the living wage for staff over 25 years old is the final straw for many.”
The NFRN’s annual survey has found that, as was seen last year, the vast majority of members will rely on cutting staff hours and working more hours themselves as the only way to make ends meet following the rate per hour increase.
Patel added: “Members already work some of the longest working weeks; to cut staff hours and work more hours themselves is increasingly becoming unfeasible and there cannot be many hours left in the week! The government needs to realise the burden the NLW will have on small independent businesses before it is too late.”
The national minimum wage will rise to £6.70 on 1st October. The national living wage will come into effect in April 2016 at £7.20 for all workers over 25 years of age.
