NFRN warns Low Pay Commission not to ignore knock on effects of minimum wage rises

In its submission to the commission, the NFRN warned that increases to NMW rates threatened jobs and staff working hours and often resulted in shop owners having to take on extra hours themselves.

National president, Stuart Reddish, said: “The headline increase in the wage rate does not include the increase in the national insurance and pension contributions that employers also have to pay.

“Given that many of the items on sale in our 11,000 members’ stores – particularly newspapers and magazines – are price marked, retailers are unable to increase prices to cover these additional payrolls costs. We would all like to pay our staff more but increases to both the National Minimum Wage and National Living Wage force our members to cut staffing levels and hours, taking on more of the work themselves. All too often, we end up paying ourselves less than the national minimum wage per hour.”

Reddish added: “Local independent stores are valued by local people as they provide much-needed services and a heart for the community.  Increasing costs, be they payroll, business rates or the costs of provider services, are continuing to damage businesses and reducing the amenities available to the local communities.”