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... »
