Monday, January 24, 2022

MPs call for National Living Wage debate claiming businesses use it “against the spirit of the law”

MPs from Labour and the Conservatives have called for a parliamentary debate focused on the National Living Wage (NLW).

According to City AM, 31 MPs plan to debate on November 4 about how some businesses’ implementation of the NLW is “against the spirit of the law”.

The application submitted by MPs centers on the motion that the house “believes that the use of the introduction of the NLW to drive down conditions and take home pay is against the spirit of the law; calls on the government to close down the loopholes that make this possible and believes that any moves to reduce the value of the national living wage… is unacceptable.”

RELATED: National Living Wage plunges 33,000 retailers into “financial distress”

It was revealed recently that the introduction of the NLW has had a huge impact on businesses across all sectors, hitting retail and the services industries hardest.

 It is estimated 33,000 retailers are now in financial distress because of the rise in wages which came into effect in April.

The rise in wages, set to further increase incrementally until 2020 when it will hit £9 per hou,r has been a controversial subject since its initial implementation.

RELATED: Government publishes largest list of National Living Wage Offenders to date

Labour MP Siobhain McDonagh led a campaign against pay changes by Marks & Spencer who reduced some staff wages in order to deal with the impact of the NLW.

UK independent insolvency firm Begbies Traynor warned of the potential impact the rates would have on business in the coming months.

“My concern is that many of these struggling businesses may now be forced to take more drastic measures to manage their growing cost base, such as further cuts to staff numbers, reducing bonuses or even passing on the increased costs to the end consumer,” partner Julie Palmer said.

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