One of the major shocks of the last Budget was the proposed introduction of the Living Wage, which will be phased in, over employees over 25, from April 2016. By 2020 all employers will be required to pay a minimum of £9 an hour, some 34% higher than the current minimum level. In an environment of near zero inflation this is potentially a significant issue for many companies. This note examines the likely economic implications, the impact on pay differentials and how this will effect quoted stocks. Please contact us for a copy of the note.