Wage rise could cost 20,000 jobs, says BRC

The British Retail Consortium has today warned that a rise in the National Minimum Wage (NMW) to£5.20 could cost retail 20,000 jobs and£2.7 billion.

The existing wage was introduced in July after the Low Pay Commission set the rate at£4.85 an hour, up from£4,50. The increase cost the industry£1.7 billion.

Following the increase, the BRC conducted its fourth major survey of retailers. Some 44 per cent of respondents said they would be forced to cut jobs if the NMW reached£5.20.

BRC director general Kevin Hawkins said there was no justification for a further increase of the NMW in real terms. He also believes the BRC has provided the Low Pay Commission with sufficient evidence to act sensibly and keep wages in line with current economic conditions.

An increasing number of retailers are now conducting a second pay review in September or October of each year, because of uncertainty about the NMW.

If the commission does not recognise the BRC's latest industry feedback, the new marker of£5.20 will be introduced from October next year.