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Analysis

Providers call on government to back down on pay rises

Boosting pay in the homecare and care home sectors is, on the face of it, a positive development supported by workers and employers alike.

Boosting pay in the homecare and care home sectors is, on the face of it, a positive development supported by workers and employers alike.

From this month the national minimum wage (NMW) rises from £6.50 to £6.70, and in April 2016 employers will be legally required to up the hourly rate again when the £7.20 national living wage (NLW) for those aged 25 and over is introduced.

An extra 50p an hour is a modest rise. In principle employers welcome the NLW, which was announced by chancellor George Osborne in his July Budget statement to reduce reliance on the state topping up wages through the benefits system.

Dire predictions

However, the question of how the NLW will be funded at a time when cash paid by councils to providers has been slashed has led to dire predictions that the NLW may force the closure of hundreds of

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