Minimum wage increases 'could affect career progression'

The forthcoming increases to the minimum wage could negatively affect future career progression within the workplace, it has been claimed.

According to the British Retail Consortium's (BRC) head of media, Richard Dodd, rises in the levels of minimum pay could detrimentally impact upon the motivation of employees to improve skill sets.

In October, the UK's minimum wage for those over the age of 22 will increase from an hourly rate of £5.52 to £5.73.

"[There is a danger] that it will erode differentials as people on the bottom level catch up with people who are more skilled and experienced who are on pay rates above the minimum wage," said Mr Dodd.

"It will also undermine career progression and training because it takes out the incentive for people to increase their skills and move up the career ladder."

For those between the ages of 18 and 21, the minimum hourly rate will rise to £4.77, from a previous level of £4.60.

The BRC is a trade association for the retail sector.