Trade call for wage award to be lower

A trade leader has called on the Low Pay Commission to scale back its recommendations for next year's minimum wage award.

Brigid Simmonds, chief executive of Business in Leisure & Sport (BISL), says any increase should be significantly lower than the 3.8% annual rise this year.

Simmonds said any increase should reflect difficulties the hospitality and leisure sector currently faces.

"We work in a sector which is directly affected by the national minimum wage.

"I would look for significantly less than the 3.8% awarded last month to reflect the way our industry has been hit by the economic slowdown," she said.

Simmons complained the minimum wage rises had a "domino effect" with staff at higher levels of a company structure demanding more.

"I would hope the Commission considers the state of the economy and our industry very carefully," she added.

British Hospitality Association (BHA) deputy chief executive Martin Couchman warned that employers faced further pressures next April when holiday pay entitlement increases were set to add 1.7% to labour costs.

"Our industry is facing severe difficulties — I hope the commission takes this into account when setting next year's recommendations.

"We hope our evidence will reflect these difficulties and the award next year will be a moderate one," he said.

Last month the minimum wage for adults increased from £5.52 to £5.73 per hour with the rate for 18 to 21-year-olds rising from £4.60 to £4.77. Sixteen and 17-year-olds received a rise from £3.40 to £3.53.

The BHA and BISL will join the British Beer & Pub Association in a submission to the commission in a few weeks' time. The recommendations on next year's increase will be announced next March.