An increase that matches inflation will allow businesses that remained shut during lockdowns to recoup losses and recover quicker
The CBI has given oral evidence to the Low Pay Commission and called Commissioners to take a cautious approach for the 2022 rate arguing that many sectors have remained shut during lockdowns and are only starting to recover now.
Businesses are committed to raising living standards and think the LPC should protect the real terms value of the minimum wage but pay increases need to be underpinned by productivity or risk being passed onto consumers through higher prices. This is in line with CBI/Pertemps Network Group Employment Trends Survey which found that of those businesses affected by the National Living Wage (NLW), nearly 6 in 10 believe the LPC should take a cautious approach in 2022, while around one in ten firms (12%) think it should freeze. The remaining 32% of firms believe there should be an increase as planned.
The CBI also argued that even though businesses value the LPC’s in
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