Begbies Traynor

National Living Wage Placing Financial Strain on 60,000 Businesses

National Living Wage Placing Financial Strain on 60,000 Businesses

Almost 60,000 UK companies that had to introduce the National Living Wage (NLW) on April 1 were already in a “dire” financial state before the new regulation was introduced, research from insolvency firm Begbies Traynor has reported. The new NLW requirement sets a higher minimum income level for employees aged over 25, now set at £7.20 an hour. According to its Red Flag research, 59,608 businesses in industries most impacted by the new NLW – predominantly those in retail and leisure – ended the first quarter of 2016 in “significant financial distress”; a 20% increase on the same period last year. Begbies Traynor have warned that the date could indicate a rise in business closures over the coming months as companies struggle to afford the higher staff cos... »