Skip to content
Search
AI Powered
Latest Stories

SGF raises cost of employment concerns with Low Pay Commission

SGF raises cost of employment concerns with Low Pay Commission

The Scottish Grocers’ Federation met with representatives of the Low Pay Commission (LPC) in London on Thursday (13) 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 per cent 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 per cent on the previous year and the highest increase of at least the past eight years.

The LPC currently estimate that the NLW rate required to meet its 2024 target will be in the range £10.90 to £11.43, with a central estimate of £11.16,seeing a further rise of up to £1.01 on this year’s NLW.

This comes at a time when the convenience sector is facing an extremely challenging trading environment. With stubbornly high energy bills, high inflation and interest rates, and a cost-of-living crisis. The additional staff costs will inevitably be passes onto customers, many of whom are also struggling to manage their household budgets.

Meanwhile, a recent survey of SGF members shows that more than 70 per cent of respondents were less likely to hire more staff, due to the wage increases, with many working over 65 hours per week, just keep costs down.

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.

“Many retail employees value the benefits of being able to work locally, and the ability to work flexible hours, but every significant wage increase leads to more staff hours being cut which has a damaging impact on local jobs and employment.

“The Commissioner and Ministers, in both Westminster and Edinburgh, must recognise that local convenience stores are vital economic drivers, that provide many benefits for their communities. On top of rising energy prices, business rates and regulatory pressures, our governments can and must do more to alleviate the growing pressure on our sector.”

Earlier this week, UK Chancellor Jeremy Hunt, and Bank of England governor Andrew Bailey, told delegates at the annual Mansion House dinner that wage restraint is required to curb high inflation. Highlighting the issue, the Chancellor informed attendees that “means taking responsible decisions on public finances, including public sector pay, because more borrowing is itself inflationary”.

More for you

A woman enters the Selfridges department store

A woman enters the Selfridges department store on December 13, 2024 in London, England

Photo by Leon Neal/Getty Images

Retail faces mixed fortunes in 2025 amid cost pressures, AI opportunities, and high street revival


The UK retail sector is bracing for a challenging but opportunity-filled 2025, according to Jacqui Baker, head of retail at RSM UK. While the industry grapples with rising costs and heightened crime, advancements in artificial intelligence and a revival of the high street offer potential pathways to growth, she said.

Keep ReadingShow less
unsafe soft drinks seized in Southend

Unsafe soft drinks seized in Southend

Photo: Southend-on-Sea City Council

1,100 unsafe soft drinks seized in Southend safety crackdown

Southend-on-Sea City Council officials have secured food condemnation orders from Chelmsford Magistrates Court, resulting in the seizure and destruction of 1,100 unauthorised soft drinks.

The condemned drinks, including Mountain Dew, 7-UP, Mirinda, and G Fuel energy drinks, were found during routine inspections of food businesses across Southend by the council’s environmental health officers.

Keep ReadingShow less
Charity Super.Mkt at Brent Cross Shopping centre in north London

A customer browses clothes inside Charity Super.Mkt at Brent Cross Shopping centre in north London on, December 17, 2024

Photo by JUSTIN TALLIS/AFP via Getty Images

Brits kindle Christmas spirit with second-hand gifts

Bursting with customers one afternoon the week before Christmas, a second-hand charity shop in London's Marylebone High Street looked even busier than the upscale retailers surrounding it.

One man grabbed two puzzle sets and a giant plush toy as a present for friends, another picked out a notebook for his wife.

Keep ReadingShow less
Nothing is more important than your Mental Elf

Nothing is more important than your Mental Elf

Lancashire Mind’s 11th Mental Elf fun run was its biggest and best yet – a sell-out event with more than 400 people running and walking in aid of the mental charity, plus dozens more volunteering to make the day a huge success.

The winter sun shone on Worden Park in Leyland as families gathered for either a 5K course, a 2K run, or a Challenge Yours’Elf distance which saw many people running 10K with the usual running gear replaced with jazzy elf leggings, tinsel and Christmas hats.

Keep ReadingShow less
A woman walks past a window display promoting an ongoing sale

A woman walks past a window display promoting an ongoing sale, on December 13, 2024 in London, England.

Photo by Leon Neal/Getty Images

Retail sales disappoint before Christmas

UK retail sales rose less than expected in the runup to Christmas, according to official data Friday that deals a fresh blow to government hopes of growing the economy.

Separate figures revealed a temporary reprieve for prime minister Keir Starmer, however, as public borrowing fell sharply in November.

Keep ReadingShow less