CBI warns against increase of minimum wage

CBI has warned that an increase in the minimum wage could increase labour costs
and hit employment.

stressed the need for caution when it published its evidence to the Low Pay Commission,
the independent body that will review the rate by next July and recommend
changes in October.

CBI advised the commission to continue using the minimum wage as a floor below
which wages should not fall rather than as an escalator for forcing up pay

Cridland, the CBI’s deputy director general, commented, “The minimum wage has
worked well overall. We should prevent it withering on the vine by raising the
rate as circumstances allow.

Low Pay Commission is best placed to weight the evidence and make an
appropriate judgement – it is not the CBI’s job to specify the rate. But
consultation with our members shows a figure in excess of £4 an hour could be
extremely damaging to business.”


Ben Willmott


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