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The cost of care conundrum

In spring 2017, Hazlewoods Chartered Accountants and Business Advisers reviewed how changes in the National Living Wage (NLW), coupled with an increasing number of employment tribunal decisions, are pushing employment costs ever upwards.

Although tribunal decisions have moved on since the spring, the outcomes from the NLW changes are moving in the same direction, and social care operators should take advice based on recent findings.

The introduction of the NLW from April 2015 and the increase to £7.50 per hour with effect from April 2017 leaves this Osborne policy legacy on track for hitting the aspiration of £9 per hour, or close to it, for all employees over 25 by 2020. This above-inflation increase, coupled with changes to the personal tax regime, is seeing low-paid workers enjoy quite significant increases in their pay, at little cost to the Exchequer.