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The sector is currently weathering the storm of a £662 million funding deficit. Worse is yet to come. In December 2019 independent researchers, CEEDA, estimated that a Conservative election victory would result in a 2020/21 funding deficit of £824m based on average wage growth of 3.6 per cent. Announcements this month on statutory pay rises will push this figure higher.  

In April the National Living Wage will rise by 51 pence, to £8.72 per hour (6.2 per cent). A similar rise is in store for 21- to 24-year olds, with an increase of 50 pence to £8.20 per hour (6.5 per cent). The government has committed to a funding increase of just £0.08 per hour (1.8 per cent). Whilst there is no doubt that pay increases are much needed by the sector’s workforce, without additional funding they could lead to job losses and closures.  

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