SGF raise cost of employment concerns with Low Pay Commission

The Scottish Grocers’ Federation met with representatives of the Low Pay Commission (LPC) in London on 13th July, to raise concerns that soaring wage costs could hamper employment and put some small businesses at risk.

The meeting, held jointly with the Association of Convenience Stores, forms part of the LPC’s annual oral-evidence session. Testimonies gathered by the LPC, alongside responses to the annual consultation exercise, will inform the commissioners recommendations to government for the 2024/25 National Minimum Wage (NMW) and National Living Wage (NLW).

On 1st April this year, the UK NLW increased to £10.42, a 9.68% increase on 2022/23. However, a collaboration between SGF and University of Stirling has revealed that the True Cost of Employment for retail is closer to £14 per hour. A jump of £1.25 or 9.8% on the previous year and the highest increase of at least the past eight years.

SGF Chief Executive, Dr Pete Cheema OBE, said : “Many convenience stores provide lifeline services and essential local employment for their communities. The never-ending pressure of absorbing more and more added costs, however, has put some businesses at risk.”

Our press release on this issue can be found here.

You can find our true cost of employment paper, carried out with the University of Stirling, here.                                                                        

https://www.sgfscot.co.uk/publications/true-cost-of-employment