MinimumWage News & Analysis
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Market Mood
B&Q (BQS) Among 600 UK Firms Paying Below Minimum Wage
B&Q and Five Guys are included among over 600 UK businesses cited for paying staff below minimum wage. A total of £4 million has been returned to affected workers, and penalties totaling £7 million have been issued to these firms. B&Q underpaid 4,530 workers by more than £456,000 while Five Guys owes over £54,000 to 3,699 staff members. The minimum wage is currently set at £12.71 for employees aged 21 and over. This issue highlights compliance concerns that may lead to increased scrutiny and operational changes for companies, impacting investment perceptions.
Read More: B&Q (BQS) Among 600 UK Firms Paying Below Minimum Wage
Next (NXT) Sees Job Applicant Surge Amid Youth Unemployment Crisis
Lord Wolfson, CEO of Next (NXT), stated that the number of applicants per job for shop positions has risen from 10 to 19 over the past two years, indicating a crisis in youth unemployment. The unemployment rate for 16 to 24-year-olds is currently 16.2%, more than three times the overall rate of 5%. Wolfson mentioned that a ban on zero-hours contracts and rising National Insurance costs could hinder job creation. Additionally, Next has reported a £70 million annual increase in its wage bill attributed to government policies while noting a thriving online business.
Read More: Next (NXT) Sees Job Applicant Surge Amid Youth Unemployment Crisis
Minimum Wage Rises to £12.71 with 2.7M Impacted Workers
The national minimum wage in the UK increases by 50p to £12.71 for those over 21, impacting approximately 2.7 million workers. Workers aged 18-20 will see an increase of 85p to £10.85, while under-18s and apprentices will get a 45p raise to £8 per hour. Businesses have expressed concern that higher wage bills may lead to price increases or staffing cuts. The Low Pay Commission indicated that previous minimum wage increases have not significantly harmed job numbers.
Read More: Minimum Wage Rises to £12.71 with 2.7M Impacted Workers