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UK – Moderate rise in minimum wage welcomed by CBI

19 March 2012

The CBI, one of the UK's biggest business lobbying organisation, today said it welcomed the changes to the National Minimum Wage rates from October 2012, which were recommended by the Low Pay Commission (LPC) and accepted by the Government today. But it also warned not to “price out young people out of a job.”

The adult rate will increase by +1.8% from £6.08 to £6.19 an hour while the youth rates will be frozen at their current levels.

Katja Hall, CBI Chief Policy Director, said “Businesses will welcome the approach taken to this year’s National Minimum Wage rates. The moderate rise in the adult rate and the freeze in the youth rates will come as a relief to the many hard-pressed firms right across the country.”

“Retailers, care homes, hospitality, and other consumer-facing businesses are experiencing particularly tough conditions, so it’s good that the LPC listened to the CBI’s advice and made sure its recommendations preserve jobs and support the fragile recovery.”

“The LPC also listened to businesses on the youth rates. With youth unemployment at its highest level for a generation, we must take great care not to price young people out of a job. Freezing the minimum wage will help reduce one of the barriers to employers deciding whether or not to take on a young person.”

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