How will the national living wage affect small firms?

The national living wage comes into effect on Friday - a new higher minimum wage for the over 25s - but how will it affect small businesses and their employees?

Although welcomed by many workers, some employers are worried, saying the extra costs may mean they might not be able to afford as many workers.

The BBC's Business correspondent Emma Simpson visits the The Firth Park Little Treasures Nursery in Sheffield - where it's estimated nearly a third of workers will benefit over the next four years, a higher proportion of employees than in any other major UK city.