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A TWO-TIER care-home system could be created if proper funding is not offered to pay staff the new national living wage, the government has been warned.
A study by the Joseph Rowntree Foundation (JRF) published today found that the adult rate, £7.20 an hour from next April, will cost £387 million a year.
About half of care home staff — 300,000 people — will be eligible for a pay rise when the new rate comes in for over-25s, with the lowest paid receiving £640 a year.
But the JRF warned that the extra costs will come in when many care homes are already under financial pressure.
The new wage will put care homes with a large number of local authority places at a “financial tipping point,” it warned.
