CIPD calls for national minimum wage freeze

The Chartered Institute of Personnel and Development (CIPD) has called for a freeze on the national minimum wage in order to help tackle levels of unemployment among the UK’s young people.

Launching its new manifesto for a lasting economic recovery, the group asserted the national minimum wage should be frozen in absolute terms as a boost to efforts from the government to tackle youth joblessness as the economy enters a period of recovery.

John Philpott, CIPD chief economic adviser, said: “Pay restraint is likely to be a feature of the year ahead as employers and employees continue to work together to minimise job losses.”

Public sector pay bills should also be frozen, while the default age of retirement should be removed, the CIPD also recommended.

Furthermore, the right to request flexible working should be extended to all employees from 2013, while a national awareness scheme on the importance of good people management skills should be launched.

The creation of a new group – the HM Revenue and Customs’ new Dynamic Response Team – was announced by the Department for Business, Innovation and Skills this week, with the team set to crack down on employers who refuse to pay their workforce in line with the national minimum wage.