Bankruptcy warning over minimum pay

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.