The latest Scottish GDP stats were published yesterday here for the month of June and here for Q2 of 2024.
Responding to the latest figures, Scottish Secretary Ian Murray said: “Scotland is critical in the UK Government’s mission for economic growth, as the Chancellor underlines today in Glasgow where she’ll meet with key members of the business community to turbocharge Scotland’s regeneration.
“Rebuilding is at the root of everything we do but the £22billion black hole in spending left by the previous government – the worst economic inheritance of any incoming government since the Second World War – means that tough decisions are ahead to achieve stability.
“We are making work pay, ensuring the national minimum wage is a true living wage. And with the end of exploitative zero-hours contracts, workers will have increased job security.
“Backed by £8.3bn of UK Government investment, Scottish-based GB Energy will bring jobs and opportunity for all parts of the UK and trade talks have resumed globally to forge stronger links with our international business partners.”
Scotland’s onshore GDP is estimated to have fallen by 0.3% in June. This follows growth of 0.2% in May.
In the three months to June (Quarter 2), GDP is estimated to have grown by 0.6% compared to the previous three month period (Quarter 1). This is a slight increase on the Quarter 1 growth rate of 0.5%.
Main undergraduate funding package now in line with the Living Wage
Scottish students will benefit from a £2,400 increase to their annual support package from the start of the 2024-25 academic year.
The new special support loan will mean that, per year, the main undergraduate funding package will rise to £11,400 and post-graduate to £13,900.
The uplift means funding support for the most vulnerable students is now in line with the student equivalent Living Wage.
Minister for Further and Higher Education Graeme Dey said: “We know that financial stress can be a significant barrier to educational success so it’s vital that we provide this uplift for students, helping them through what are tough economic times.
“This package of measures will help learners to fulfil their potential and delivers on our Programme for Government commitments to increase the student support package to the equivalent of the Living Wage, to introduce a special support payment and to review funding provision for postgraduate students.
“Along with free tuition, this uplift demonstrates the Scottish Government’s commitment to helping students – even as we face the most challenging financial situation since devolution.”
“Everyone deserves a fair day’s pay for a fair day’s work.“
A campaign to boost the number of businesses which become real Living Wage accredited has led to 12,000 Edinburgh workers receiving a direct, guaranteed uplift in pay over the past decade.
Since the Scottish Real Living Wage campaign was first launched in 2013, over 700 Edinburgh businesses have made the voluntary commitment to pay the only wage rate designed to rise in line with the cost of living in the UK.
Those commitments have meant total pay increases to the value of almost £100m over the last 10 years for the lowest paid workers in Scotland’s capital city.
Speaking at an event in Edinburgh on Wednesday to mark Living Wage Week Scotland, Councillor Jane Meagher welcomed the achievement but said fair pay must go further.
As Co-Chair of the Edinburgh Living Wage Action Group and Convener of Housing, Homelessness and Fair Work, she said: “We’ve had a record-breaking few years in Edinburgh for Living Wage sign ups and it feels like we’re witnessing a real movement.
“This year alone we have seen more than 100 businesses sign up as real Living Wage employers, and eight Edinburgh employers committing to the new Living Hours standard. This needs to be celebrated, but we cannot be complacent.
“The next few months and years will be critical because we know that poverty in Edinburgh is rising. Just last week, we declared a housing emergency because we simply do not have enough adequate affordable housing in the city to meet demand. With households facing financial insecurity and Edinburgh’s rents some of the highest in the UK, secure wages are as important as ever.
“We know Edinburgh-based businesses want to help tackle low pay and insecure work, but we know that employers are under increasing pressure. They too face a cost of living crisis, high bills and recruitment challenges.
“As the rate of the Real Living Wage rises to £12 an hour, Living Wage Week and the events hosted here in Edinburgh and across the country provide an opportunity to showcase how far we’ve come, while acknowledging that more work is needed. We need to help employers to make the Real Living Wage the norm.
“Everyone deserves a fair day’s pay for a fair day’s work.”
Kat Brogan, Managing Director of Mercat Tours and Co-Chair of the Edinburgh Living Wage Action Group, said: “To any employer who is not there yet but wants to sign up to the Real Living Wage, now has never been a more crucial time. The cost of living – particularly in Edinburgh – remains high.
“As a powerful advocate for Living Wage businesses, our Action Group can provide advice and guide you towards becoming a Real Living Wage employer. It will benefit your team, your business and Edinburgh as a thriving city which offers a fair experience for all.
“The Real Living Wage is a crucial element of ‘Real Living’ – a happy, healthy, fulfilling life – and it’s so important to highlight its importance this Living Wage Week.”
Earlier this year, over 70 delegates from 16 UK towns, boroughs and cities joined the City of Edinburgh Council to call for employers to offer ‘a fair day’s pay for a fair day’s work’ at Scotland’s first Living Wage Places Network event. Edinburgh’s selection followed the Scottish Capital’s recognition as a Living Wage City in 2021.
Christine McCaig, Projects Coordinator at Living Wage Scotland, added: “We are celebrating the continued progress toward ‘Making Edinburgh a Living Wage City’ this Living Wage Week.
“Around one fifth of the 3400 accredited Living Wage employers in Scotland are based in Edinburgh, signalling Scotland’s capital city as a significant contributor to the continued growth of the Living Wage employer movement.
“Despite the challenges facing many businesses, more employers are showing their commitment to tackling in-work poverty and demonstrating leadership and resilience at a time when workers need it most.”
The Edinburgh Living Wage Action Group was established in 2021 with the aim of building the living wage movement in Scotland’s capital city.
Employers who would like to know more about the group, or would like information and advice on becoming accredited can contact policyandinsight@edinburgh.gov.uk.
Our Living Wage Scotland team has had great success in encouraging 3,000 businesses in Scotland to become accredited Living Wage employers. Now the Living Wage Foundation is moving into a new area.
The Living Pension accreditation scheme was launched in Edinburgh on 21 March 2023. It is a voluntary savings target for employers and aims to help workers build up a pension pot that will provide enough income to meet basic everyday needs in retirement.
Research completed by the Resolution Foundation in 2022 showed that four in five workers, and 95% of low-paid workers, paying into defined contribution schemes are not saving at the level needed to reach an acceptable standard of living in retirement.
You can read more about Living Pensions here, and you can also sign up to a free webinar being hosted by the Living Wage Foundation on Tuesday 16 May 2023.
Low-paid workers across the country will receive a pay increase this weekend as all rates of the National Minimum Wage rise.
The National Living Wage (NLW) increases on Saturday 1 April by 9.7 per cent to £10.42, providing a pay rise to millions of workers aged 23 and over across the UK. 21-22 year olds will see their pay increase by 10.9 per cent to £10.18 per hour while pay for younger workers and apprentices will also rise by 9.7 per cent.
NMW rate
Annual increase (£)
Annual increase (per cent)
National Living Wage (23+)
£10.42
0.92
9.7
21-22 Year Old Rate
£10.18
1.00
10.9
18-20 Year Old Rate
£7.49
0.66
9.7
16-17 Year Old Rate
£5.28
0.47
9.7
Apprentice Rate
£5.28
0.47
9.7
Accommodation Offset
£9.10
0.40
4.6
These increases follow recommendations made to the Government by the Low Pay Commission (LPC) in the autumn.
The NLW increase means another significant step towards reaching the Government’s target of two-thirds of median earnings by 2024. The increase is also expected to boost the real value of the NLW, restoring most of the real value lost since April 2021.
The LPC is now consulting on National Minimum Wage (NMW) rates for April 2024 and beyond and will make its recommendations to the Government in October.
The consultation will run from 23 March to 9 June 2023. For more information, including how to submit responses, click here.
Bryan Sanderson, Chair of the Low Pay Commission, said: “From April, millions of workers will benefit from these increases to the NMW and NLW. Despite turbulent economic conditions, the labour market has remained strong and unemployment is low.
“We remain confident that this increase is unlikely to have a detrimental impact. Indeed, the high levels of inflation are felt more acutely by those on low pay who spend a higher proportion of their income on energy and food.
“The new NLW rate keeps us on track to reach the Government’s target of two-thirds of median earnings by 2024. We estimate the NLW will need to rise next year to between £10.90 and £11.43 to meet this target. We also remain committed to lowering the NLW age threshold to 21 years of age in 2024.
“In our consultation this year we are also looking beyond 2024, and inviting evidence and views on the future of minimum wage policy once the two-thirds target is achieved. The NMW is a central feature of the UK labour market and workers and employers alike will want to contribute to the debate about its future.”
The LPC has published a short report which looks ahead at what the new rates will mean, and sets out an updated path of the NLW to its target of two-thirds of median hourly earnings by 2024.
Estimating the forward path of the NLW is very challenging as earnings growth is difficult to measure and predict in the current economic climate. Our central estimate of the on-course rate of the NLW for 2024 is £11.16, within a range of £10.90 to £11.43.
Edinburgh Living Wage Action Group celebrated another success this week (Thursday 17 November) when it was named winner of the Outstanding Leadership Award at the annual Scottish Living Wage Awards.
Launched in November 2021, the group is a partnership of Edinburgh employers from a range of sectors, all committed to helping to make Edinburgh a Living Wage City.
In its award citation, the Scottish Living Wage Foundation recognised the group for the immediate impact it has had in Edinburgh since its inception, and the ways members are using their local influence to help grow the number of real living wage employers in the city.
Over 580 businesses in Edinburgh are now accredited as ‘Living Wage employers’, a number higher than any other city in Scotland.
Since the launch of the action group Edinburgh has seen a record-breaking increase in new accreditations with close to 120 more employers committing to pay a real living wage and giving guaranteed direct pay rises to 1,400 workers in the city.
Cllr Jane Meagher, chair of the Edinburgh Living Wage Action Group and Housing, Homelessness and Fair Work Convener at City of Edinburgh Council, said: “At a time when the cost of living crisis is making life hard for so many people and so many businesses in Edinburgh, this is a great time to celebrate and to thank the record number of employers who are taking the step to make sure their workers are paid a decent wage that provides enough to live on.
“The Edinburgh Living Wage Action Group is full of inspiring employers and business leaders who are determined to make this city a great place to work and to thrive.
“We’re proud of the progress we’ve made this year, and this award is a fantastic boost that makes us ever more committed to making Edinburgh a Living Wage City.”
Kat Brogan, Managing Director at Mercat Tours, said: The motivation to promote the benefits of the Real Living Wage through the Edinburgh City LW Action Group comes from the impact we see on our own team – morale, loyalty and quality of work.
“However it runs far deeper – this group champions the benefits of REAL LIVING, beyond the hourly rate paid to your team. Respect, dignity and fulfilling work benefits individuals, teams, businesses and our community to thrive and flourish.”
Councillor KATE CAMPBELL, Convener for Housing, Homelessness and Fair Work, writes about Edinburgh’s ambitions to be a Living Wage city.
Fair work. You’d think in Scotland in 2021 we wouldn’t need the ‘fair’. Just the concept of work in one of the most prosperous, democratically developed and progressive nations in the world – it should just include a presumption that work will be fair.
But sadly, that isn’t the case.
We’ve too many workers in our city paid the minimum, not the living wage – that’s around 38,000 people who earn less than £9.50 per hour. Many don’t have job security or guaranteed hours. Many have little or no access to training or development and lack any form of representation through trade unions.
I’m not going to pretend that the City of Edinburgh Council alone can fix this. We can’t. But there are some things we can do.
Firstly – we’re going to make Edinburgh a Living Wage city.
Step one is to acknowledge all the fantastic employers in our city. We need to champion the people and organisations who recognise the value of their staff. And the benefit of investing in them. And we need to come together to promote those benefits.
We’re setting up a group of existing living wage employers across different sectors. We’ll work together to understand the barriers that prevent organisations becoming living wage employers, and how we can break down those barriers. And then we’ll put together an action plan.
It’s clear that in Edinburgh tourism is a major employer, and we know that hospitality is one of the areas that has historically struggled to pay the living wage.
But hospitality businesses have also been hit hard during the pandemic – reduced capacity due to social distancing, closure due to lockdowns, outbreaks and the need to self-isolate.
As labour shortages arise from Brexit there will be a need for businesses to offer more to retain skilled staff. Fair work and the living wage will be absolutely key.
Over recent years we’ve seen customers ask more of businesses – sustainability is a good example. People want to spend money with organisations that they believe are contributing to saving the planet, or at least working hard to mitigate any negative impacts from their activity. It costs more – but customers value sustainability so it pays for itself.
So, it’s important that as customers we are asking for the same ethical values of fair employment – because as citizens we will all benefit.
The pandemic has hit many hard but people on the lowest wages, and small businesses, have undoubtedly borne the brunt. Let’s all be part of the recovery to a better city. It’ll be hard for some businesses to make the leap to becoming living wage employers – so let’s make sure we support and encourage them.
Close to two-fifths (37%) of UK workers in full or part-time employment are given less than a week’s notice of their shifts or work patterns, according to new research conducted by the Living Wage Foundation.
The research – based on two surveys, of over 2,000 UK adults in each case – addresses a gap in the UK’s labour market data and understanding of hours insecurity, being the first recent study to assess notice periods for work schedules across the workforce.
The study found that among the 59% of workers whose job involves variable hours or shift work, over three-fifths (62%) reported having less than a week’s notice of their work schedules. At the extreme, 12% of this group – amounting to 7% all working adults – had less than 24 hours’ notice.
While short notice periods affect workers throughout the UK, they are particularly common in London, where almost half (48%) of all workers received less than a week’s notice of work schedules. Scotland (35%), the South of England excluding London (34%), and the North of England (33%) are areas where short notice periods were less common.
A second survey conducted by the Living Wage Foundation homed in on the experience of full-time, low-paid workers, finding that they were particularly hard hit by short notice of working hours.
Of those working full time and paid below the real Living Wage of £10.85 in London and £9.50 in the rest of the UK, more than half (55%) had less than a week’s notice of work schedules, with 15% having less than 24 hours’ notice.
Low-paid, full-time workers from Black, Asian and minority ethnic backgrounds (68% of whom had less than a week’s notice of work patterns) and those with children (64%) were also disproportionately affected.
Despite this, and the challenges facing many employees and businesses, some employers are stepping up to commit to stronger standards on shift patterns to better support workers and families.
This includes Scottish energy provider SSE, which has today been announced as an accredited Living Hours Employer, joining, amongst others, Aviva and Standard Life Aberdeen as employers committing to provide workers with secure, guaranteed working hours.
The Living Hours programme requires employers to both pay a real Living Wage and commit to provide at least 4 weeks’ notice for every shift, with guaranteed payment if shifts are cancelled within this notice period.
Living Hours employers also provide a guaranteed minimum of 16 working hours every week (unless the worker requests otherwise), and a contract that accurately reflects hours worked.
The Foundation’s research shows that currently just 10% of workers who have variable working hours or conduct shift work received at least four weeks’ notice of shift patterns.
Laura Gardiner, Director, Living Wage Foundation, said: “Without clear notice of shift patterns provided in good time, millions of workers have had to make impossible choices on childcare, transport and other important aspects of family life.
“Low-paid workers have been particularly hard hit during the pandemic, with millions struggling to plan their lives due to the double whammy of changing restrictions on economic activity and insufficient notice of work schedules from employers.
“Despite this, and the challenges many employers have faced, some have stepped up during this crisis and committed to provide workers with secure, guaranteed hours and notice of shift patterns. These are the businesses that will help us rebuild and recover, and we encourage more employers to follow their example.”
John Stewart, SSE HR Director, said: “The real Living Wage movement has been an incredible phenomenon, championing the fundamental truth that people should be able earn enough to live a decent life.
“Living Hours is the other side of that coin. The amount of pay employees take home can be affected by irregular and unpredictable hours. The majority of our direct employees are already on contracts which meet the Living Hours requirements, but it is right that a company like SSE, headquartered in the UK and delivering some of the biggest projects in the fight against climate change, should guarantee higher standards for workers.
“This is fundamental to ensuring there is a fair and just transition to net zero. Like with our Living Wage accreditation, the most important impact of Living Hours is that, in time, it will flow through our supply chain activities and benefit those working regularly on our behalf too.
“It is the right thing to do and we are very proud to have achieved this accreditation and hope it will help show others the way.”
The UK has reached a crucial moment in terms of social care. Two key messages at the heart of UNISON’s Pay Fair for Care national day of action and rally were that we must ‘stand up for care workers’ and ‘keep up the pressure’.
The event – co-hosted by the Future Social Care Coalition, a cross-party alliance of more than 80 organisations and individuals – comes against a background of crisis in the social care sector.
That has been compounded by 11 months of the COVID-19 pandemic, which has raised awareness nationally of the work that care workers do, but in a context of increased risk to their own lives as the virus took a devastating toll on care homes and the vulnerable.
Yet many employees in care homes, together with those looking after people in the community, earn less than the real living wage of £9.50 an hour (£10.85 in London). UNISON wants ministers to ensure every care worker is on the real living wage rate, as a bare minimum.
UNISON general secretary Christina McAnea told those attending the rally: “Care is part of the infrastructure of this country … it is essential.”
Ms McAnea was able to refer to an independent report, commissioned by the Scottish government and only released moments before the rally, which stresses that the care sector is “highly gendered”, with 83% of the workforce being female.
“Were 83% male, she said, “it would not be marginalised as it is.”
But she continued: “This is a happy day – we’ve got fantastic support. Let’s stand up for care workers. Make what happens in care, fair and deliverable.”
Care worker and UNISON senior vice president Sian Stockham told the rally a little of her own story – and why she has started a petition to government to create an emergency support fund to increase care workers’ wages.
“The general public is calling us heroes and going out and clapping for us – let’s put those claps into words,” she said.
Not only is pay in the sector low, there’s also an issue with zero-hours contracts, she added. “How can you budget when you don’t know what you’re getting?”
Ms Stockham, who at 66 is unable to retire and has two jobs in order to make ends meet, went on: “There have been times when I couldn’t put my heating on. A few years ago, I remember walking around with holes in my shoes.”
On misconceptions about the nature of care work, she responded ironically: “Oh, I’m ‘low-skilled’,” before explaining just a few of the skills her work entails.
Many speakers stressed the need for cross-party political support for the issue – ‘it’s the only way to get things done’ was a recurring theme.
Liz Kendall, Labour’s shadow minister for social care, said: “Transforming social care is the challenge of our generation”, adding that, “We must make sure that all frontline care workers get the pay and conditions that they need.”
She – like many other speakers – noted that social care and the NHS “are inextricably linked”.
But not only was the current state of social care “morally wrong,” it was also “economically illiterate.” If carers have to give up work or reduce hours, or if a vulnerable person is stuck in hospital because of a lack of care, both are far more costly to the economy than properly funded social care.
The rally saw speakers from across the Westminster spectrum, from the charity and voluntary sector and from trade unions.
They included former health secretary Jeremy Hunt and independent peer Lord Victor Adebowale, the chief executive of the social care enterprise Turning Point, who stressed the need for a proper living wage for care workers.
Former minister for pensions Baroness Ros Altmann said that nobody disagreed about the need for an overhaul of the social care system, but “we need to get on with it” and “we need a new Beveridge,” referring to the 1942 report by Liberal economist William Beveridge that formed the basis for the Welfare State as part of the country’s recovery after WWII.
Deputy Labour leader Angela Rayner – herself a UNISON member and former care worker – described the pandemic has having “created a hunger and a thirst for us to do the right thing”.
Social care “saves the taxpayer so much money in the end,” she said. Stressing the importance of it being a cross-party campaign, she added: “But no more jam tomorrow”.
Two panel discussions sandwiched messages of support, which included video calls from national treasures Joanna Lumley and Jo Brand.
“I’m backing UNISON’s call for a living wage for all the care workers,” said the Ab Fab star. “They seem to be the invisible part of our nation’s health system. They look after millions of people, they do it for practically nothing and some of them for nothing at all. It seems massively unfair that they’re the forgotten ones.”
Comic and former nurse Jo Brand – after apologising for her “lockdown haircut” – said that “care workers are simply not rewarded for the very, very hard work that they do. Pay care workers a living wage.”
Other messages came from Andy Burnham, the mayor of Greater Manchester, Liberal Democrats leader Ed Davey, shadow immigration minister Bell Ribeiro-Addy, Labour peer David Blunkett and shadow minister for employment Seema Malhotra.
As the rally concluded, Ms AcAnea reminded everyone: “Let’s keep the pressure up!”
UK Government announces pay rise for 2.8 million people
Low-paid workers will receive a 6.2% pay rise with a new National Living Wage (NLW) of £8.72 per hour, the biggest cash increase ever, the Government has announced today.Continue reading A Happy New Year for low paid workers
