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Cost to charities of National Living Wage likely to be £500 million

Lincoln academic Stephen McKay, Social & Political Sciences, recently calculated that charities might need to find an extra £500 million to pay for the new National Living Wage at £9 or above in 2020.

The research underlying the claim was published by the Third Sector Research Centre at:

http://www.birmingham.ac.uk/generic/tsrc/documents/tsrc/working-papers/BP-on-National-Living-WageSMc.pdf

And was covered by the Third Sector magazine with further quotes and details at:

http://www.thirdsector.co.uk/national-living-wage-cost-sector-500m-2020-study-claims/finance/article/1357540

The new National Living Wage is expected to exceed £9 per hour by 2020 for those aged 25 or older. In addition to the extra wages, further employer National Insurance and pension contributions must also be taken into considered. With many charities dependent on funding from a cash-strapped local government sector, meeting these additional costs is likely to be particularly challenging.

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