The budget blow: dealing with the living wage – Trowers & Hamlins looks at how the change might affect provider’s contracts

The Budget in July delivered an unanticipated blow to social care providers. The introduction of a compulsory living wage rising to £9 in 2019 means a real-terms increase of about 50% over four years to bottom-line staff costs where employees are paid the minimum wage. Providers who currently pay above the minimum may not be able to continue to do so. This may affect recruitment and retention.