22 business focus Rise again in national
minimum wage rate On October 1 this year the national minimum wage rate increased again, writes Beverley Elliott, HR director of Griffins
The Low Pay Commission recommends changes and this year the Government have accepted their proposals and increased the adult rate by 12p per hour to £6.31. Other rates have also increased by lesser amounts to £5.03 for 18 to 20 year olds, £3.72 for 16 to17 year olds and the apprentice rate to £2.68. In setting the rates there is a balance to be found between protecting living standards of the lower paid and protecting the number of jobs available.
Many businesses use the national minimum wage as a starting rate for their core workers so this will lead to a 1.94% rise in wage costs and coupled with the introduction of pension auto-enrolment
for larger businesses in the past year, with all employers following over the next few years, owners are concerned their direct costs will rise more than they can recover from increased prices.
All business owners employing workers at the national minimum wage level are faced with these rises each year and need to make sure they are factored into their forward financial planning.
The Low Pay Commission were concerned that any rise in the rate for apprentices would lead to more employers ignoring the rate altogether and pay less to young people joining under training arrangements. For these reasons they recommended a freeze for
the apprentice rate at £2.65 but the three pence rise was announced by the business secretary, Vince Cable who said: “Apprenticeships are at the heart of our goal to support a stronger economy, and so it is important to continue to make them attractive to young people. Therefore, I am not taking forward the LPC’s recommendation to freeze the apprenticeship rate due to non-compliance, but instead am raising it in line with the youth rates.“
The apprentice rate is available for employers to pay to young people following an approved apprenticeship and for apprentices over 19 years of age for the first 12 months of their training.
Other rates for young people should only be used while their employees are at that age and as they reach 18 and 21 their pay rates should rise accordingly. These development rates are available for employers of younger workers whilst they learn the skills and gain experience
Founder members of Business Barometer panel invited
Members will be invited to contribute to the Thames Valley Business Barometer and represent a cross section of regional businesses from the area, giving companies the opportunity to influence Barometer reports through discussion and the identification of emerging trends.
Now in its second year, the Barometer provides a quarterly snapshot of business and economic confidence in the Thames Valley region. The survey results offer a compelling street-level view of business sentiment, helping to inform decisions on growth, investment and employment in the region.
Simon Brooker, head of BDO Thames Valley commented: “This new Barometer panel gives local organisations a voice, creating an opportunity for discussion around topical issues and current trends in business. It provides panel
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members with key insights into the region’s growth strategy and an understanding of how their peers are faring, as well as the impact that businesses are having on the Thames Valley economy.”
There are many benefits in becoming a founding member of the Thames Valley Business Barometer panel:
• Thought leadership: Organisations can share their views and comment on key trends and themes around regional business for the Barometer.
• Share of voice: Members will be invited to discuss the initial findings at events and have their views referenced in the final production of the report.
• Profile: There will be a social media and PR programme wrapped around the launch of each Barometer and also members will be invited to attend regular Barometer events.
within the workplace. Despite the lower rates being available employment amongst the younger workforce is still causing concern as whilst the overall numbers of people out of work continues to fall rates for youth unemployment continue to rise.
Details: Beverley Elliott Griffins Employment Solutions
b.elliott@griffins.co.uk www.griffins.co.uk
measuring results
business barometer
Accountancy and business advisory firm, BDO LLP in collaboration with PR and marketing agency, C8 Consulting, announce plans to create a new panel of business leaders to influence commerce, infrastructure and social trends in the Thames Valley
• Networking: Attendance at the quarterly Twenties Club event will be extended to all panel members, where they can network with business peers and discuss the Barometer findings.
• Enhancing relationships: The opportunity to nominate businesses they work with or admire to be interviewed for an in-depth business profile, and to invite businesses within their networks to participate for themselves.
Paula Elliott, managing director of C8 Consulting said: "By becoming a founding panel member, we are encouraging local businesses to commit to providing responses to the Barometer on a regular basis, making it easier for us to benchmark from one Barometer report to the next. Panel members will be asked to extend the invitation to complete the survey, to up to three of their
closest customers, suppliers or contacts within their networks within the Thames Valley. Those stakeholder organisations represented on the panel are asked to commit to share and promote the Barometer survey in their key forums and across their membership bases.”
Panel members will also be given the chance to attend the senior-level networking event, the Twenties Club. This takes place once a quarter and findings from the Barometer are previewed at this forum, before being distributed to the general business community.
If you are a business in the Thames Valley area and would like to commit to becoming a panel member, or simply to discuss the Thames Valley Business Barometer further, see details below.
Details: Karen Meenderink 0118-9254448
Karen.Meenderink@
bdo.co.uk
Paula Elliott
0118-9001132/07894-339645
Paula@c8consulting.co.uk
THE BUSINESS MAGAZINE – THAMES VALLEY – OCTOBER 2013
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