Tag: Living Wage Foundation

Almost half a million workers to benefit from Living Wage boost

LIVING WAGE MOVEMENT CONTINUES TO GROW

  • Almost half a million Living Wage workers are set for a pay boost as over 15,000 Living Wage Employers are signed up to pay the new rates 
  • The real Living Wage is the only UK wage rate independently calculated based solely on the actual cost of living and is different from the government’s National Living Wage, which is the legal minimum employers must pay for over-21s 
  • 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.”

Edinburgh venue becomes UK’s first Living Pension employer in the hospitality sector

People-focused organisation sets example with new accreditation

A FLAGBEARER for the hospitality industry has become the UK’s first business in hospitality to be recognised as a Living Pension employer.

Surgeons Quarter, owned by the Royal College of Surgeons of Edinburgh (RCSEd), is leading the way with its implementation of numerous workplace benefits as the country faces a worsening staff mental health crisis.

The venue has been recognised by the Living Wage Foundation (LWF) for ensuring that all 159 members of staff are contributing at least 12% of their salary towards their pension. 7.5% of that comes from the employer – 4.5% more than the required minimum.

As a heavily people-focused organisation, Surgeons Quarter offers industry-leading pay comfortably above the £10.90 per hour LWF Living Wage, as well as a 50% staff discount at all Best Western Hotels, access to an employee assistance programme, Bike2Work scheme, complimentary gym membership and discount cards.

Scott Mitchell, Managing Director of Surgeons Quarter, said: “Hospitality is not a sector that is renowned for its pay and conditions and we want to be at the forefront of changing that.

“Vital hardworking staff are rewarded appropriately – but not factoring in a pension is only stacking up problems for the future.

“We are incredibly proud to be the first business in the industry to be accredited as a Living Pension employer, but it’s important we don’t stop here and strive to keep improving our offering to our talented teams.

“This is why we offer numerous opportunities and reward schemes to all of our staff members to not only benefit them at work, but also outside of the office.”

The organisation operates Edinburgh’s largest independent hotel and offers cutting-edge hospitality, operating multiple RCSEd venues in the city’s old town.

After starting at the LWF accredited firm, employees are treated to a familiarisation overnight stay where they can enjoy the venue’s Ten Hill Place luxury hotel facilities with a guest of their choice. 

Living Pension accreditation launched in March 2023 and builds on the work of the real Living Wage by providing stability and security for workers now and in the future.

Director of the Living Wage Foundation, Katherine Chapman said: “We are delighted that Surgeons Quarter are the first hospitality business to sign up to be a Living Pension Employer, providing stability and security for their workers now and in the future.

“Over the last ten years the Living Wage campaign has grown in strength and numbers. Now paid by over 12,500 employers, it delivers essential pay rises to 430,000 workers every year.

“The Living Pension builds on this by encouraging employers to do more to help their workers build a pension pot that meets basic everyday needs in retirement.”  

Surgeons Quarter promotes, sells and manages all commercial activities held within the RCSEd campus. It includes facilities for conferences, meetings, private events, parties, weddings and its own four-star hotel Ten Hill Place as well as Café 1505 and SQ Travel.

All profits support the charitable aims of the College which are education, assessment and advancement in surgical standards worldwide.

Living Wage conference to call for ‘fair day’s pay for a fair day’s work’

MAKING LIVING WAGE THE NORM

Advocates for the real living wage will gather in Edinburgh today as the City Chambers hosts Scotland’s first Living Wage Places Network event.

Over 70 delegates from 16 UK towns, boroughs and cities will join the City of Edinburgh Council to call for employers to offer “a fair day’s pay for a fair day’s work”.

Together, they hope to work towards making the Living Wage the norm in each of their local areas as part of the inaugural conference organised by the Living Wage Foundation and Living Wage Scotland.

Edinburgh’s selection as host city follows the Scottish Capital’s recognition as a Living Wage City in 2020. Over 630 Edinburgh-based employers have signed up to pay the living wage, building on a commitment made by the city to continue to boost the number of businesses which become accredited.

Councillor Jane Meagher, Edinburgh’s Housing, Homelessness and Fair Work Convener, is Co-Chair of the Edinburgh Living Wage Action Group and will open the event. She said: “We’ve had a record-breaking couple of years in Edinburgh for Living Wage sign ups and it feels like we’re witnessing a real movement.

“Edinburgh-based businesses want to help tackle low pay and insecure work, but we know that employers are under increasing pressure too. They are facing recruitment challenges and high energy bills.

“With the cost of living crisis serving as a stark reminder of what life on low pay means for workers, tackling in-work poverty together has never been more vital. We must work together to break down barriers and champion the true value of people’s jobs. Everyone deserves a fair day’s pay for a fair day’s work. 

“Hosting Living Wage Places in Edinburgh is our opportunity to showcase how far we’ve come, learn from each other and work towards a future where the Living Wage is the norm. Thank you to everybody who is coming to join us.”

Kat Brogan, Managing Director of Mercat Tours and Co-Chair of the Edinburgh Living Wage Action Group said: “The Real Living Wage is a crucial element of ‘Real Living’ – a happy, healthy, fulfilling life. 

“Our Action Group serves our LW aims in 3 ways. We celebrate LW employers who pay RLW and choose to go beyond, supporting Real Living more broadly in creative and practical ways that has real impact on their teams’ lives. 

“Where employers want to reach this goal, we’ll provide advice and guide them to becoming LW employers. This will benefit their team, their business and Edinburgh as a thriving city which offers a quality experience for all.

“As members of the LW community, employers’ views are presented to local and national Government by the Action Group, a powerful advocate on behalf of LW businesses.”

Clare Goff, Senior Project Manager, Living Wage Places for the Living Wage Foundation, said: “We’re delighted to hold our inaugural Living Wage Places Network event in Edinburgh.

“Scotland is the birthplace of the Living Wage Places movement, with Dundee the first city to receive recognition in 2019. Since then, the Living Wage Foundation has recognised a further 15 cities, boroughs and city-regions for Making Living Wage Places.

“The Living Wage Places movement brings together the public sector, businesses and civil society to tackle in-work poverty and make the real Living Wage the norm in their place.  This event will bring our network together for the first time to share learning and expand our impact.”

Almost two fifths of workers given less than a week’s notice of shifts

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.” 

Real Living Wage increases to £9.50 per hour

Over 250,000 people working for almost 7,000 real Living Wage Employers throughout the country are set for a vital pay boost as the new Living Wage rates rise to £9.50 across the UK (20p increase), and £10.85 in London (10p increase), supporting workers and families through the pandemic. 

The Living Wage rates are the only rates independently calculated based on what people need to live on. 

Over 800 more employers have accredited with the Living Wage Foundation since the start of the pandemic, with major new names including Tate and Lyle Sugars, Network Rail, the All England Lawn Tennis Club (The Championships, Wimbledon) and Capital One.  

These organisations join a network of almost 7,000 employers across the UK, including two-fifths of the FTSE 100 companies, household names including Aviva, Nationwide, Everton FC, and Brewdog, as well as thousands of small businesses, who are choosing to pay the real Living Wage to ensure all staff earn a wage that meets the real cost of living, and covers everyday needs.   

Research conducted by Cardiff Business School has demonstrated the significant impact of the Living Wage campaign since the start of the pandemic.

Over 250,000 workers have benefitted from an additional £200 million since the start of lockdown, including 130,000 key workers. Since 2011 over £1.3bn in extra wages has gone to workers and families through the Living Wage.  

The UK rate is 78p per hour more than the government minimum wage (for over 25s) and the London Living Wage is £2.13 per hour higher. 

A full-time worker paid the new £9.50 real Living Wage will receive over £1,500 in additional wages annually compared to the current Government minimum. For a full-time worker in London this figure rises to over £4,000.
 
The announcement comes as new research by the Living Wage Foundation has demonstrated the scale of low pay during the pandemic, with 5.5 milion jobs (20.3% of employee jobs) still paying less than the real Living Wage. 

Northern Ireland had the highest proportion of jobs paying below the Living Wage (25.3%) and Scotland the lowest (15.2%). 


 Laura Gardiner, Living Wage Foundation Director, said: “It’s an incredibly challenging time for us all, but today’s new Living Wage rates will give a boost to hundreds of thousands of UK workers, including thousands of key and essential workers like cleaners, care workers, and delivery drivers who have kept our economy going.  

“Since the start of the pandemic employers have continued to sign up to a real Living Wage. During Living Wage Week it’s right that we celebrate those employers that have done right by workers and families, providing them with much needed security and stability even when times are hard. These are the employers that will allow us to recover and rebuild from this crisis.”  

The Archbishop of York, the Most Revd Stephen Cottrell, said: “As our leaders continue to grapple with managing this pandemic, it is critical that all of our workers are kept in the heart of all quarantine management and recovery plans.

“Throughout this pandemic, we have depended on those of us who have selflessly put their work ahead of their own health and wellbeing for the continued functioning of our society.

“Over the past few months, we have recognised and applauded their fantastic work; now, this Living Wage Week, it is time we do the morally right thing and follow this recognition with well-deserved reward, paying them what they need to live. It is right to be paid a fair day’s wage.” 

Gerald Mason, Senior Vice President of Tate and Lyle Sugars, said: “Tate & Lyle Sugars is proud to have been formally accredited as a Living Wage employer.

“It has been the cleaners, security guards and catering staff who have kept our factories clean, safe and well-fed over the last 6 difficult months. We’re pleased to recognise their value and role in helping us feed the nation.” 

Loraine Martins, Network Rail’s Director of Diversity and Inclusion, said: “I am delighted that Network Rail has been accredited as a Real Living Wage employer. While we already pay our 41,000 employees the Real Living Wage, official accreditation by the Living Wage Foundation means that thousands of rail workers in our supply chain will also benefit. 

“The varied work that rail staff carry out on our trains, in our stations and on our tracks has never been more important than in recent months, where they have helped to keep Britain connected in challenging times by running a safe and reliable service for key workers and others relying on the railway.

“Our work with contractors and the Living Wage Foundation will ensure that railway staff are paid appropriately for their vital work.” 

Owen, Team Member of TTK Confectionary Nottingham, said: “The Real Living Wage has allowed me to pay my bills and save for the first time.

“I am saving for driving lessons and a car. I feel valued and appreciated and that my hard work and dedication has been recognised through the introduction of the Living Wage.” 

Oliver, a delivery rider at e-cargobikes.com, said: “Earning a Living Wage means I am able to support a household, including my partner, and takes a huge load from my shoulders.

“To be employed by an organisation that not only treats people with respect but backs that up with decent pay means that I feel valued in a way that no other flexible work has provided.

“The psychological benefit of this will extend further than me and reminds me that I work for a company that sees further than the person as an employee, but also sees their capacity to contribute to wider society when treated fairly.”