Difference in wages narrower in Scotland than UK as a whole
Fair Work Secretary Neil Gray has welcomed figures showing the gender pay gap in Scotland has fallen to a record low.
The Office for National Statistics (ONS) Annual Survey of Hours and Earnings shows the gender pay gap in Scotland fell from 3% in 2022 to 1.7% in 2023 – the lowest since the series began in 1997.
At the same time, the gap increased from 7.6% to 7.7% in the UK as a whole.
The ONS survey also shows full-time women’s weekly pay in Scotland rose 10.6% over the year – the largest annual increase of the 12 countries and regions of the UK.
Wages for full-time employees rose higher in Scotland with median weekly pay increasing 9.7% over the year to hit £702.80 in 2023. The UK-wide figure was up 6.2% to £681.70.
The ONS survey was published ahead of Living Wage Week, which highlights its benefits to businesses, employees and the economy. In Scotland in 2022, 91% of over-18s were paid at least the real Living Wage – the highest rate of the four nations in the UK.
The Scottish Government is committed to continuing to improve women’s access to the workforce, including a series of actions to support women in entrepreneurship and expanded access to funded childcare for low-income families.
Fair Work Secretary Neil Gray said: “This survey shows Scotland continues to have a lower gender pay gap than the UK as a whole, which is welcome, but there is still a lot of work to be done.
“While employment law is reserved to the UK Government, the Scottish Government is committed to improving workers’ rights and conditions through our Fair Work approach, and encourage all employers to take action to tackle gender pay gaps in Scotland.
“Our National Strategy for Economic Transformation sets out a programme of action for a fairer and more equal society, including for employers to pay at least the real Living Wage and address pay and employment gaps – vital in tackling the cost of living crisis and in-work poverty, issues that can have a disproportionate effect on women.
“It is only with the powers of an independent nation that we can use all the levers other governments have to tackle poverty and inequalities.”
Edinburgh has today been awarded Living Wage City status as the UK marks Living Wage week (15 – 19th November), an annual celebration of the real Living Wage.
The accreditation has been awarded by Living Wage Scotland in recognition of the Scottish Capital’s ambition to deliver on its new Edinburgh Living Wage City action plan and double the number of Living Wage accredited businesses to over 900 across the city over the next few years.
Around 450 Edinburgh businesses are already committed to voluntarily paying their staff the Living Wage, paying a minimum hourly wage of £9.90 per hour. This new Living Wage rate was announced yesterday (Monday 15 November) as part of Living Wage Week 2021.
Now through the action plan – developed by the Edinburgh Living Wage Action Group, a collaboration of employers, public sector bodies, trade unions, social enterprises, and business organisations, supported by key city anchor institutions including the City of Edinburgh Council and the Edinburgh Partnership – the aim is to see at least 500 new accredited businesses.
It is expected that this will mean up to 40,000 workers in Edinburgh are protected by Living Wage commitments from their employers. Of those, at least 10,000 will be workers who receive a direct pay increase as a result of this commitment.
The commitment to becoming a Living Wage City arises from the calls to action made by the Edinburgh Poverty Commission report. To pay a fair wage is one key aspect of eradicating poverty across the Capital.
Last year, the City of Edinburgh Council became the first UK local authority to commit to ending poverty by a specific date – by 2030. Tackling poverty in Edinburgh remains one of the Council’s key priorities to making sure everyone can take advantage of everything the Capital has to offer and is paid a fair day’s pay for a fair day’s work.
The City of Edinburgh Council’s Fair Work Convener and Co-Chair of the Edinburgh Living Wage City Action Group, Councillor Kate Campbell, said:“All partners in the Edinburgh Living Wage City Action Group have put so much work into getting to this point.
“We are all incredibly proud that we can call our Capital an official Living Wage City. We now need to continue that work so that we sign up 100 new accredited businesses every year for the next five years. That’s double the current number of businesses signing up.
“Being an accredited living wage employer is about so much more than paying a Living Wage. It’s about embedding a culture of Fair Work and giving staff financial security, showing them that they’re truly valued for the contribution they make. And the benefits for employers include being able to keep and attract skilled staff – something many businesses are struggling with right now.
“So, we’re asking all businesses and organisations across the city to join us. Together, we can make our city fairer and make sure everyone shares in our economic recovery.”
The City of Edinburgh Council’s Fair Work Vice Convener, Councillor Mandy Watt, said:“In-work poverty needs to end – and Edinburgh is taking a welcome step towards that today by becoming a real Living Wage City. Fair pay, fair hours and respect at work should be something that all workers can expect from their job.
“We’re hoping that a huge number of Edinburgh employers share our ambition and will raise wages to the level of the real Living Wage, which was announced yesterday (15 November). Once that’s done, they can move forward to full accreditation and show everybody that they’re helping to end poverty in our city.”
The Scottish Government’s Minister for Just Transition, Employment and Fair Work Richard Lochhead said:“I am pleased to see Edinburgh achieve the significant milestone of becoming a Living Wage City.
“There is increasing evidence demonstrating the benefits of Fair Work to both workers and business and by promoting the real Living Wage, the Edinburgh Action Group recognises the importance that fair pay has on the local economy.
“I congratulate the Action Group and all the 2employers in Edinburgh that have played a part in this important achievement.
Lindsay Fyffe-Jardine, CEO at Edinburgh Dog and Cat Home, said: “We are very proud to part of a business community that recognises the importance of providing the Living Wage to their staff, and what an impact this has on both their income and wellbeing.
“At Edinburgh Dog and Cat Home, happy people always means happy animals, and through our commitment to the living wage, we are reducing financial pressures that our staff might otherwise face, ensuring the highest standard of care for our dogs and cats.
Peter Kelly, Director of The Poverty Alliance (above) said: “Today’s announcement that Edinburgh has been awarded ‘Making Living Wage Places’ recognition sends a strong signal of the determination to end low pay and loosen the grip of in-work poverty for workers and their families in Scotland’s capital city.
“The commitment by this alliance of employers to the people of Edinburgh is very important, and we look forward to working with them on making Edinburgh a Living Wage city. We want to see towns and cities in Scotland come together to tackle in-work poverty, and this is a significant step on that journey.”
Christine McCaig, Projects Coordinator and Living Wage Scotland said:“This Living Wage Week, we are delighted to announce the launch of an ambitious action plan to ‘Make Edinburgh a Living Wage City’. There are now more than 2400 accredited Living Wage employers in Scotland, over 450 of which are based in Edinburgh, who together want to ensure workers have what they need to thrive.
“The impact of the real Living Wage in tackling in-work poverty is strengthened by a collective effort from local employers, anchor institutions, key stakeholders and communities working together. We hope to see many more employers in Edinburgh become accredited to drive the vision of Making Edinburgh a Living Wage City.”
The real Living Wage rate this year has largely been driven by sharply rising fuel and rent costs. The real Living Wage is different to the Government minimum wage for over 23s, called the ‘National Living Wage’ (NLW).
While the real Living Wage is independently calculated based on living costs and is paid by employers voluntarily, the government’s NLW is based on a percentage of median earnings, and all employers are required to pay it.
In Scotland, more than 15% of all jobs pay less than the real Living Wage – around 350,000 jobs.
Since 2011 the Living Wage movement has delivered a pay rise to over 45,000 people in Scotland and put over £240 million extra into the pockets of low paid Scottish workers.
Over 300,000 Living Wage workers are set for a pay boost
More than £1.6 billion in extra wageshas gone to low-paid workers since the start of the Living Wage movement 20 years ago
£613 million in extra wages has gone to low-paid workers since the start of lockdown, with a record number of employers signing up – over 3,000 since the pandemic began
Greater London Authority and Greater Manchester Combined Authority are today making announcements on their progress to becoming Living Wage City Regions
Despite these successes, 4.8 million employees (1 in 6 workers) are still paid below the Living Wage, with those from racialised groups1 more likely to be paid below the Living Wage than white workers (19.4% compared to 16.3%).
Over 300,000 people working for almost 9,000 real Living Wage Employers throughout the country are set for a vital pay boost as the new Living Wage rates rise to £9.90 across the UK (40p increase), and £11.05 in London (20p increase), supporting workers and families.
The Living Wage rates are the only rates independently calculated based on what people need to live on.
This year the movement for a real Living Wage celebrates its twentieth year, with new research from the Cardiff Business School showing Living Wage workers have benefitted from more than £1.6bn in extra wages during this period. One in 13 workers now work for an accredited Living Wage Employer.
The new Living Wage rates and the ‘National Living Wage’: know the difference
A full-time worker earning the new, real Living Wage would earn £1,930 a year more than a worker earning the current government minimum (NLW). For a worker today that’s the equivalent of 7 months of food bills and more than 5 months’ rent based on average household spending in the UK.
Even on next April’s higher NLW rate of £9.50, a full-time worker on the real Living Wage would earn £780 more.
In London, a full-time worker on the new real Living Wage rate would earn an additional £4,173 a year compared to a worker on the current NLW and £3,022 more than a worker on next year’s National Living Wage.
The increase in Living Wage rates this year has largely been driven by rising fuel and rent costs.
The Living Wage movement continues to grow
Major new Living Wage employers announced today include FTSE 100 construction firms Taylor Wimpey and Persimmon Homes, Fujitsu, food delivery company Getir, and Capita. They join half of the FTSE 100 companies, household names like Aviva,Everton FC, Burberry and Lush 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. More than 3,000 employers have now accredited with the Living Wage Foundation since the start of the pandemic.
Metro Mayors in London and Greater Manchester have also today announced major new commitments to create Living Wage City Regions which could see thousands more pay rises.
Looking globally, the Living Wage campaign also today launches Living Wage for US, the first coordinated national effort set up to ensure that workers across the United States are paid a real Living Wage.
Low pay in the UK
The announcement of the new rates comes as new research by the Living Wage Foundation has demonstrated the scale of low pay during the pandemic, with 4.8 million jobs (17.1% of employee jobs) still paying less than the real Living Wage.
Northern Ireland had the highest proportion of jobs paying below the Living Wage (21.3% or 236,000) and the South East the lowest (12.8% or 533,000). [4]
Those from racialised groups were more likely to be low paid – with 19.4% of these workers earning below the LW compared to 16.3% of white workers.
Katherine Chapman, Living Wage Foundation Director, said:“With living costs rising so rapidly, today’s new Living Wage rates will provide hundreds of thousands of workers and their families with greater security and stability.
“For the past 20 years the Living Wage movement has shaped the debate on low pay, showing what is possible when responsible employers step up and provide a wage that delivers dignity.
“Despite this, there are still millions trapped in working poverty, struggling to keep their heads above water – and these are people working in jobs that kept society going during the pandemic like social care workers and cleaners.
“We know that the Living Wage is good for businesses as well as workers, and as we rebuild our economy post pandemic, the real Living Wage must be at its heart.”
The Archbishop of York, the Most Revd Stephen Cottrell, said:“This Living Wage Week, the Living Wage Foundation has announced the new rates that cover what we all need to earn to get by.
“Their movement will see over 9,000 businesses elect to give their 300,000 workers not only what they need to survive, but to thrive as well.
“The principle behind the campaign for better pay and secure working conditions ought to be a pillar of our new society, and one I hope will be adopted by even more forward-thinking businesses as we look ahead to 2022.”
Sarah Wadsworth, Fujitsu UK HR Director, said:“I am delighted that Fujitsu have signed as a Real Living Wage employer. This long-term commitment is not only the right thing to do for our employees but also ensures that our suppliers and partners are also planning to align to this for their employees.
“Fair pay for all employees continues to be relevant for our business as well as the benefits it brings to wider communities.”
Anne Billson-Ross, Taylor Wimpey Group HR Director, said: “This voluntary commitment is a fantastic example of the direct action we are taking to ensure we remain an employer of choice, committed to do the right thing by our employees, suppliers and subcontractors.”
Dean Finch, Group Chief Executive of Persimmon Homes, said: “I want all our employees to feel valued and fairly paid for the good work that they do. Paying the real Living Wage is an excellent way of demonstrating this. I am therefore delighted we have become a Living Wage Foundation accredited employer and joined what is an important campaign.”
Kim Coles, Finance Director at Lush, said:“At Lush we are committed to a fair wage at all levels of the business and fully support the UK Living Wage Foundation’s approach of a hard day’s work deserving a fair day’s pay.
“We have been paying the London Living Wage since 2011 and paying all UK staff at or above the “real” hourly Living Wage rate since April 2017. We continue to commit to the rate in tough times because that is when our people need it the most, and it’s the right thing to do.
“Lush staff are crucial to our success, and they work incredibly hard making and selling our products. Having an independently calculated real living wage rate means that we have a positive step towards staff being able to afford what they need to thrive, not just survive.
“It also means that the same fair trade commitment we make to our ingredient suppliers is made to our staff and that we can be confident their rates of pay are fair and increase in line with real living costs.”
Turancan Salur, General Manager at Getir, said: “At Getir we pride ourselves on being a great employer. As well as paying all our colleagues at least the real Living Wage, with the opportunity to earn more through bonuses, we provide pensions, sick pay, paid leave, insurance and all PPE and electric delivery vehicles.
“It is only right and fair that we do this as our workforce is the most important part of our business and we fully support the Living Wage Foundation for promoting such an important issue.”
Ryan, a Living Wage worker at COOK Food, said:“Before joining COOK I’d worked in a pub for two years. I was on minimum wage and I was working at least 50 hours a week to pay the rent. Even though I was working so hard, I started to get in debt. My relationships suffered, and it started to affect my health both mentally and physically.
“However, since coming to COOK, being paid the real Living Wage made all the difference. I could work only 40 hours a week and take home more than when I was working 50 or 60 hours at the pub.
“Gradually my mental health improved, and I also started to live more healthily. I lost 30kg because I actually had the time and money to make real food, eat properly and exercise. My relationships improved as I had time to spend with my friends and made new friends at COOK, too.”
Commenting on the Living Wage Foundation figures which show that one in six workers are earning under the real Living Wage, TUC General Secretary Frances O’Grady said: “Every worker should be able to afford a decent standard of living.
“But these new figures from the Living Wage Foundation show that low pay is endemic in modern Britain. Millions are in jobs that don’t pay the bills or put food on the table.
“After eleven years of Conservative government, real wages are only just getting back to their 2009 level. And the Budget revealed we face another half decade of wage stagnation.
“With Britain in the middle of a cost-of-living crunch, it’s time for the government to act.
“Ministers must start by increasing the minimum wage to £10 immediately, banning zero hours contracts and giving trade unions greater access to workplaces to negotiate improved pay and conditions.
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.
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.”
