1 April 2016

  |  CBI Press Team

News

National Living Wage

The CBI has commented on the introduction of the National Living Wage – the most significant labour market intervention since the National Minimum Wage.

National Living Wage

Josh Hardie, CBI Deputy Director-General, policy and campaigns said:

“Companies are committed to raising prosperity and living standards - but for wage increases to be sustainable they must go hand-in-hand with productivity growth.

“If the National Living Wage (NLW) doesn’t get this balance right it will risk being unaffordable for many firms. Smaller businesses and those in key sectors like hospitality, retail and care are likely to be particularly affected.

“Companies have been looking at their business models to manage the extra costs by reorganising the workforce, raising skills, improving leadership and management capacity and investing in new technologies. But even so, some may be forced to reduce hours and benefits for their employees.

“Given that this policy is so significant for so many businesses the Government should listen to – and act on – the advice of the independent Low Pay Commission, which is well-placed to monitor and recommend the best way to make this policy contribute to prosperity over the long term.”