National living wage takes effectThe new national living wage comes into force today, meaning workers over the age of 25 must receive an hourly rate of at least £7.20 – an increase of 50p. A report by the Social Market Foundation think tank warns small firms will see wage bills rise at triple the rate of bigger companies. Those with fewer than 250 employees will grow on average by 1.5%, compared to 0.6% for businesses with 250 to 4,999 staff. The Guardian says middle class households who rely on cash-in-hand cleaners, gardeners and car washers are among the employers deemed most likely to try to avoid paying the increased minimum wage. Mark Cahill, managing director of ManpowerGroup, has warned that one of the unintended consequences could be a decision by employers to favour workers under the age of 25.
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