The introduction of the minimum wage has led to pay levels being compressed, “destroying differentials and removing rewards and incentives for improving skills”, according to a report by Oxford University.

The study found that 96% of workers in hospitality and 75% of retail and wholesale workers earned the minimum wage.

The minimum wage, which was introduced in 1999, will rise from £5.35 to £5.52 an hour in October.

Do you have news for www.recruiter.co.uk? Send it to [email protected]