Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise

Department for Work and PensionsLatest NewsEconomics, government & businessLabour marketPay & benefits

Clash of opinion over minimum wage increase

by Kat Baker 30 Apr 2009
by Kat Baker 30 Apr 2009

Leading HR and business representatives have clashed over whether the national minimum wage should be frozen or raised during the recession.

With the Low Pay Commission set to report to government tomorrow on its proposals for any modifications to the minimum wage this year, agreement cannot be reached on what the best outcome for businesses would be.

The government raised the minimum wage from £5.52 to £5.73 in 2008.

David Yeandle, head of employment policy at manufacturing body EEF, told Personnel Today the government should implement a “modest” increase in the minimum wage, but this should not exceed 1.8%.

He said: “In manufacturing we are seeing average pay settlements of around 1.7-1.8%, and anything more than that for the minimum wage will raise questions.”

Putting pressure on the government to implement a freeze on the minimum wage would end up costing companies more in the long run, he explained.

“I am nervous about calling for a freeze because it would provide an opportunity for the government to give a bigger increase next time round. Companies can cope with a modest increase now.” he added.

The Charted Institute of Personnel and Development (CIPD), however, has urged the government to “hold off” on its annual increase in the minimum wage to allow businesses in hard-hit sectors to preserve jobs during the recession.

John Philpott, chief economist at the CIPD, said: “While [freezing the minimum wage] will be bitterly disappointing to the lowest paid in society, it reduces the risk of job losses in low paid sectors such as retail and leisure at a time when deflation on the RPI measure of inflation will limit the impact of a minimum wage pause on people’s real living standards.”

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Meanwhile, Neil Carberry, head of employment and pensions at the CBI, has advised the commission to “proceed with utmost caution this year” as lower paying industries have been hurt by the recession.

Any changes made to the minimum wage will take effect on 1 October.

Kat Baker

previous post
Barely one in four employers using Jobcentre Plus
next post
Companies under pressure as hundreds take ‘swine flu sickies’

You may also like

‘Flawed system’ blocking apprenticeships from young people

18 Sep 2025

Personnel Today Awards 2025 shortlist: Workplace culture (smaller...

18 Sep 2025

Trainee GP who displayed Palestine flag sues for...

17 Sep 2025

Graduates face ‘white-collar’ recession in jobs market

17 Sep 2025

Ben & Jerry’s co-founder quits over Unilever’s social...

17 Sep 2025

Inflation unchanged at 3.8% in August

17 Sep 2025

Tech firms to plough £30bn into ‘AI Growth...

17 Sep 2025

Retirement at risk – why we all need...

17 Sep 2025

Sky to cut 600 jobs as it ‘reshapes’...

17 Sep 2025

MPs reject Lords’ amendments to Employment Rights Bill

16 Sep 2025

  • Workplace health benefits need to be simplified SPONSORED | Long-term sickness...Read more
  • Work smart – stay well: Avoid unnecessary pain with centred ergonomics SPONSORED | If you often notice...Read more
  • Elevate your L&D strategy at the World of Learning 2025 SPONSORED | This October...Read more
  • How to employ a global workforce from the UK (webinar) WEBINAR | With an unpredictable...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits Live
Employee Benefits
Forum for Expatriate Management
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise