Two thirds of small businesses are yet to adopt wage rise

Approximately one million workers were set to benefit from a rise in the National Minimum Wage on Tuesday; however a survey has suggested that many businesses are yet to take action.

The hourly Minimum Wage has increased by 3.8 per cent, meaning those over 21 will be guaranteed at least £5.73 an hour, up 21p from £5.52.

Despite the new legislation, a recent survey by Bibby Financial group found that two thirds of small business owners have not yet made moves to implement the changes.

The results of the survey echo warnings from the Trades Union Commision (TUC), who cautioned that employers who tried to avoid the legislation could spoil the success of the rise.

“Honest employers suffer when dodgy ones fail to pay the minimum wage,” said TUC General Secretary Brendan Barber.

He continued: “Dodging the minimum wage also leaves the UK’s vulnerable workers in even deeper poverty – and we all pay the price for this.

"Tougher enforcement penalties and greater funding for HM Revenue and Customs are the best ways to crackdown on these minimum wage cheats.”