A growing number of employers across the capital are committing to paying the Real Living Wage.
New numbers released today to mark Living Wage Week reveal that there are now 790 accredited employers, collectively employing over 221,000 workers across Edinburgh.
Since last year there have been more than 40 new accreditations in the city, resulting in 13,683 workers receiving a welcome boost to their incomes.
The Real Living Wage is an independently calculated rate based on the actual cost of living. It’s paid voluntarily by employers and is updated annually to make sure hourly pay keeps up with the essential costs of housing, childcare, transport, and heating costs.
Living Wage week, which runs from 10 to 16 November, provides an opportunity to reflect on the achievements of the movement to date, recognise its positive impact on workers and communities and to thank employers for maintaining their commitment, despite challenging business conditions.
Councillor Tim Pogson, Housing, Homelessness and Fair Work Convener and Co-Chair of the Edinburgh Fair Work Action Group, said: “I’m delighted that every year an increasing number of employers in Edinburgh are committing to paying the Real Living Wage, meaning thousands more workers are earning a fair day’s pay.
“There are now 790 Living Wage Employers – up more than 40 on last year – and I’d like to thank each and every one for making the effort to sign up.
“More than 80,000 residents in Edinburgh are struggling to make ends meet and earning a fair wage is key to tackling poverty and the rising costs of living. We want to continue working with employers to encourage them to commit to paying the Real Living Wage and Living Wage Week is a great opportunity to highlight this.
“There’s still so much work to do but I’m really encouraged by the great strides made by employers across the city, despite facing their own pressures.”
Kat Brogan, Managing Director of Mercat Tours and Co-Chair of the Edinburgh Fair Work Action Group said: “Employers in Edinburgh are continuing to put the wellbeing of their workers first by committing to paying the Real Living Wage. This is despite challenging economic conditions with rising business costs.
“Paying the Real Living Wage is more important than ever. The cost of living continues to rise, and we are seeing persistent levels of poverty in the city, particularly in-work poverty.
“We know that well paid, fair and secure work is one of the best and most sustainable routes out of poverty. By committing to paying the Real Living Wage, employers are doing their bit to support city-wide efforts to reduce levels of poverty.”
The new real Living Wage rates are now worth over £2,262 more per year in the UK than the legal minimum, and over £4,700 more in London
Nearly £3.5bn in extra wages has gone to low paid workers since 2011
The Living Wage Foundation has revealed that the Real Living Wage will increase to £12.60 next year.
Almost half a million people working for more than 15,000 real Living Wage Employers throughout the country are set for a vital cost-of-living pay boost, as the real Living Wage rates rise to £12.60 an hour across the UK (60p or 5% increase), and £13.85 an hour in London (70p or 5.3% increase).
Recent research by the Living Wage Foundation shows that despite inflation easing, many of Britain’s 3.7m low paid workers are still struggling with the impact of years of high prices, with 42% having less than £10 left each week after covering essential expenses, 39% having used a food bank in the past year and 32% have skipped meals for financial reasons.
The real Living Wage vs the ‘National Living Wage’ – the difference
The real Living Wage is different to the government’s minimum wage rate, which for those over the age of 21 is often called the “National Living Wage”. It is a higher, voluntary rate that is independently calculated based solely on the actual cost of living. The Government’s rate is the legal minimum businesses are required to pay by law.
The real Living Wage applies to all workers over the age of 18 working for a Living Wage Employer and is £12.60 an hour. The ‘National Living Wage’ applies to those over the age of 21 and is worth £11.44 an hour.
A full-time worker earning the new, real Living Wage would earn £2,262 a year more than a worker earning the current government minimum (NLW), and £1,170 more than their current pay. In London, a full-time worker on the new real Living Wage rate would earn an additional £4,700 a year compared to a worker on the current NLW, and £1,365 more than their current pay.
Despite the economic challenges, in the past three years record numbers of employers have signed up to pay the real Living Wage, including to their third-party contractors like cleaners and security guards, with 1 in 9 employees now working for an accredited Living Wage Employer.
There are now over 15,000 Living Wage Employers, with recent accreditations including Pieminister, Fred Perry and the National Theatre. They join half of the FTSE 100 companies, household names like Aviva, Everton FC, Ikea, Burberry and LUSH as well as thousands of small businesses, who are choosing to pay the real Living Wage to provide workers and families with greater security and stability.
There are now 180 Living Hours Employers, including abrdn, Aviva, and West Brom Building Society, going beyond payment of the real Living Wage to also provide a guaranteed minimum of 16 hours work a week, a month’s notice of shift patterns and a contract that reflects hours worked.
Over 50 employers who want to ensure their workers never face poverty in retirement are signed up to the Living Wage Foundation’s Living Pension accreditation. Living Pension Employers provide a Living Pension savings level using either a cash (£2,950) or percentage (12%) target, with a minimum of 7%, or £1,720, contribution coming from the employer.
Katherine Chapman, Living Wage Foundation Director, said:“Low paid workers have been hardest hit by the cost-of-living crisis and are still struggling to stay afloat amidst persistently high prices.
“The real Living Wage remains the only UK wage rate calculated based on actual living costs, and the new rates announced today will make a massive difference to almost half a million workers who will see their pay increase.
“It’s a challenging time for businesses too, which is why it is so encouraging to see the Living Wage movement continue to grow at pace. This year, we reached the major milestone of 15,000 accredited Living Wage Employers – with half of them signing up since 2021.
“Employers who want to go beyond the Government’s minimum wage and ensure their workers are paid in line with the real cost of living can look to these leading employers and accredit with the Living Wage Foundation.”
The City of Edinburgh Council is a Living Wage employer.
Responding to the news, Councillor Jane Meagher, Housing, Homelessness and Fair Work Convener, said: “Thousands of workers across Edinburgh are set for a boost in pay from May thanks to the new Living Wage rate.
“Helping our city’s workers as the cost of living soars, the rate set by the Living Wage Foundation will rise by 60p to £12.60 an hour across the UK.
“Too many people in our city have been pushed into deprivation because of insecure work. It really can happen to any of us and that is why the Living Wage is such a powerful tool for making sure people are paid fairly for their work.
“Considering the increasing pressures businesses are also under, we are so appreciative of the way Edinburgh employers continue to lead the way in Scotland, making Living Wage the norm.”
The city council is supporting calls for fairer pay in local government.
Following agreement by the Policy and Strategy Committee, the Council Leader will write to the Scottish and UK Governments requesting new funding for local councils to support a pay award for all workers, in line with calls from trade unions.
Council Leader Cammy Day said: “There are 80,000 people living in poverty in Edinburgh and because of the soaring cost of living, in-work poverty is rising. One of the most effective ways we can prevent hardship is to provide people with a fair day’s pay for a fair day’s work.
“We have close to 20,000 Council workers keeping our city clean, safe and moving and we’re calling on Government to properly and fully fund a fair pay award for each one.”
It’s dedicated team of 41 Armed Forces veterans hand assemble more than five million poppies and 12,000 wreaths every year – but now Lady Haig’s Poppy Factory (LHPF) can add another feather to its cap after becoming an accredited Living Wage Employer.Continue reading Poppy Factory becomes Living Wage Employer
