Time for Low Pay Commission to tread more carefully

Commenting on the publication of the Low Pay Commission (LPC) Report 2025, published this week, Neil Carberry, REC Chief Executive, said:

“The footprint of the minimum wage is growing, reaching well beyond the sectors traditionally most associated with it. The report highlights that more employers say they are reducing jobs or hours in response to rising labour costs. The LPC heard directly from businesses that rising labour costs have pushed some firms to cut back, including reducing hours, freezing recruitment and, in a growing number of cases, cutting jobs. It also finds evidence of reduced training and a reluctance to take on unskilled workers, as businesses look for experienced staff to contain costs and risks. This is driving lower recruitment and fewer hours in some sectors and risks damaging the opportunities of young people at a time of rising unemployment. Businesses favour a rising minimum wage, but after a strongly expansionary period it is time to tread more carefully.”