During an evidence session with the Low Pay Commission on July 13, ACS chief executive James Lowman emphasized the significance of the Commission’s independence in recommending future wage rates. It is crucial that these recommendations are based on their own economic analysis rather than succumbing to political pressure or arbitrary targets.
To address the potential impacts of wage increases, ACS has urged the Commission to consider implementing an emergency brake system. The emergency brake would be activated if any of the following effects were experienced:
– A decline in employment opportunities for low-paid workers
– An increase in gig economy employment
– A reduction in in-work progression
– Negative effects on entrepreneurship attractiveness
– A decrease in business investment
The recent findings from ACS’ National Living Wage Survey in 2023 have indicated that retailers have already responded to the current increases in the NLW by making adjustments such as reducing profits (69% of stores), decreasing staff hours (56%), reducing business investments (50%), and implementing process automation (50%).
Mr. Lowman stated, “The Low Pay Commission must continue to provide recommendations on wage rates based on independent economic analysis and thorough discussions with businesses regarding the impact of labor costs. Convenience stores provide valuable flexibility, offering secure and flexible jobs within local communities. However, recent increases and labor market challenges have put enormous pressure on these establishments when it comes to recruitment and retention. An ’emergency brake’ mechanism to halt uprating during periods when wage rates adversely affect employment opportunities could be vital for the long-term sustainability of UK retailers and various other business sectors.”
As part of its current assignment, the Low Pay Commission is tasked with raising the National Living Wage in order to reach two-thirds of median earnings by 2024. This projection suggests an hourly rate of £11.16 in April 2024, an increase from the current £10.42 per hour rate. The Commission is currently reviewing its remit beyond 2024 and is gathering evidence from a wide range of stakeholders, including ACS.
In June, ACS submitted written evidence to the Low Pay Commission, which can be found here: [link to the evidence](https://cdn.acs.org.uk/public/lobbying/acs_submission_-_low_pay_commission_consultation_2023.pdf).
