Manch­ester looks

The Jewish Chronicle - - NEWS - BY JOSH JACKMAN

THE LARGEST communal wel­fare char­ity out­side of Lon­don will have to find more than £500,000 by 2020 to meet the na­tional liv­ing wage.

Chief op­er­at­ing of­fi­cer at The Fed in Manch­ester, Mark Cun­ning­ham, cal­cu­lates that the cost to the char­ity, which em­ploys 350 peo­ple, will be at least £80,000 next year, when the hourly liv­ing wage rises from £6.50 to £7.20.

Those who earn be­yond £7.20 will also re­ceive pay in­creases de­signed to main­tain wage dif­fer­en­tials. The char­ity is also rais­ing the pay of those un­der 25, who are ex­empted from the leg­is­la­tion, in line with the liv­ing wage.

He feels that it would oth­er­wise “de­mor­alise staff, who by virtue of their age would be get­ting paid less for do­ing the same job”.

Mr Cun­ning­ham adds that

Mark Cun­ning­ham by 2020, lower-paid staff will have re­ceived an in­crease in salary of 30.4 per cent, in keep­ing with gov­ern­ment-man­dated pol­icy. He predicts that within the sec­tor, ris­ing staff costs “will see many care providers go out of busi­ness by 2020”.

He says the ex­tra cost to The Fed will be close to £550,000 in to­tal by the time the £9 an hour min­i­mum takes ef­fect in five years and would have “huge con­se­quences”.

“At the same time that [lo­cal author­ity] fund­ing has ef­fec­tively re­duced and costs are set to spi­ral, the needs of the peo­ple we care for are in­creas­ing. Peo­ple have more com­plex needs and re­quire more help and, there­fore, more staff.

“We have no plans to re­duce staff but we do need to bridge the fund­ing gap. In­di­vid­u­als and fam­i­lies will have to con-

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