The chancellor is expected to announce that the UK’s minimum wage will increase from £8.91 to £9.50 an hour in his Autumn Budget on Wednesday (27 October), reports suggest.
The rise is a 6.6% increase in the minimum wage for all those aged 23 and over – more than twice the current 3.1% rise in the cost of living. It will take effect from 1 April next year.
NFRN National President, Narinder Randhawa, said: “We would all like to pay our staff more, but the headline increase in the wage rate does not include the increase in National Insurance and pension contributions that employers also have to pay.
“Given that many of the items on sale in our 11,000 members’ stores – particularly newspapers and magazines – are price marked, retailers are unable to increase their prices to cover these additional payrolls costs.”
Randhawa added: “Independent retailers have already been hit hard by the Covid pandemic, with many having to reduce staff levels and hours and take on more of the work themselves. This increase to the national minimum wage will only make matters worse.
“At a time when small businesses need help and support more than ever, this move by the government feels like a kick in the teeth for those that are already struggling to survive.”
