Employer's lobby group urges pause on hike in pay level

The Confederation of British Industry has called for a freeze of the minimum wage level at 拢4.85 until 2006.

The body is urging a "pause year" to assess the impact of last month's above inflation rise in a submission to the Low Pay Commission (LPC). The rate for over 21s went up from 拢4.50 to 拢4.85.

CBI director general Digby Jones said there was "increasing concern" about the impact of the minimum wage among employers. He said: "The country's hard-earned stability will be threatened if we see wage inflation across the board caused by large increases at the lower end."

The submission drew criticism from union body the TUC, which described it as "mean spirited". General secretary Brendan Barber said: "There is no reason why Britain's lowest paid should see their pay frozen for the next year. The country can afford to give them a proper rise."