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Chancellor issues Living Wage perks warning

20 April 2016

Chancellor George Osborne has warned companies not to reduce staff perks to compensate for the increases in the National Living Wage.

Speaking to ITV, he said: "It's not in the spirit of the law.

"Companies should be much more careful about their reputation," he said.

The new minimum wage for workers over 25 years of age was introduced at the beginning of this month.

Discussions and analysis is ongoing to further determine how this is affecting the FM sector.

Reports are emerging of companies reducing overtime pay rates and benefits, according to the BBC, in order to compensate for the increased rates of pay.

Mr Osborne's statement followed a Commons debate earlier this week on the effect of the hourly increase in the National Living Wage, which rose by 50p to its new rate of £7.20 per hour.

He further stated that profitable companies not complying with the spirit of the law would face government pressure.

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