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Care homes could be forced into bankruptcy because of an increase in the minimum wage, the Independent Healthcare Association has warned.

The government last week confirmed that it had accepted recommendations from the Low Pay Commission that the minimum wage should be increased from £4.20 to £4.50 and from £3.60 to £3.80 for 18 to 21 year olds from October.

But IHA chief executive Barry Hassell has warned that the rise, which will increase the sector's pay bill by £300m, could result in further home closures unless councils increase their fees to homes.