BBPA in call to ease minimum wage rise

The British Beer & Pub Association has urged the Low Pay Commission (LPC) to keep future minimum wage rises to a 'sensible level as the industry prepares for the latest increase from Saturday.

From 1 October, the national minimum wage increases from £4.85 to £5.05 an hour representing a 20% increase inside three years. The rate for staff aged from 18 to 21 will rise to £4.25. Midlands and north-west based BBPA members met with the LPC in Manchester to warn above-inflation rate rises had seriously damaged the profitability of many pubs.

'Our members highlighted how increases had squeezed profits, hindered recruitment, eroded pay differentials and resulted in less staff being employed, said BBPA Midlands secretary Richard Matthews.

'There had also been cuts in training and demands from more highly-paid staff seeking similar percentage increases.

A recent British Hospitality Association survey revealed that two out of ten businesses said they would be forced to cut jobs following the increase. The pub industry may also face a concerted crackdown from the Department of Trade and Industry on minimum wage offenders if a pilot scheme proves successful.

Debbie Graham of the Cross Keys in Barnwood, Gloucester said that the rise could have a 'devastating impact on tenants who may be forced to take on more themselves and cut staff hours.

However, John Moir of the Cock in Sarratt, Hertfordshire added: 'It won't affect us as we already pay above the minimum wage as we believe it creates loyalty amongst staff and they provide a better service.