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Benefit of living wage put at £2bn

The Treasury would save more than £2 billion a year if workers were paid the "living wage" because of higher income tax payments and lower spending on benefits, a study shows.

The Resolution Foundation and IPPR think-tanks said the suggested rate of £7.45 an hour and £8.55 in London would add £6.5bn to workers' earnings.

Paying the living wage in the public sector would increase costs, but would save the Treasury more than £2bn, the study found.

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Finance

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