UK employers are overwhelmingly behind the latest minimum wage increase, according to new research.
The surprising figures, from IRS Employment Revew, show that nine in ten bosses think that the increase was a good thing, despite it being hotly contested by business groups.
The headline low-pay barrier for people over the age of 21 jumped from £4.50 to £4.85 in October last year, while a similar increase was given to 18-to-21 year-olds. In addition a development rate was introduced for 16 and 17 year-olds.
Since its introduction in 1999 increases in the minimum wage have consistently outstripped inflation, lumping pressure not just on junior workers' salaries, but also those higher up the pay scale.
When asked at what level the minimum wage should be pegged, about half of respondents said £5.00 and around a quarter said it should stay where it is.
Sheila Attwood at IRS said: "While our survey shows overwhelming support for the latest increases, trade unions and employers' federations are divided over the scale of future increases to the NMW.
"While a quarter of the respondents who stated that the adult minimum wage should be above £5.00 an hour are from organisations whose minimum rate is currently at £4.85, many organisations told us that pay increases to accommodate the wage were funded out of company profits or through increasing prices.
"This suggests that while there is support for more uplifts, many organisations have few surplus funds available to absorb the cost of rises above the rate of inflation."
