Living Wage – The NEN – North Edinburgh News

UK Government moves to end unfair pay and discriminatory age bands

The Government’s manifesto commitment to deliver a genuine living wage for working people took a step closer today as it set out new considerations for the Low Pay Commission when recommending next year’s National Living Wage and National Minimum Wage.

Discriminatory age bands to be removed as new Low Pay Commission remit delivers progress towards a single wage rate for adults.
Government places cost of living at the heart of the remit a year on from its first inclusion, meaning more money is being put into the pockets of hardworking people – delivering the Plan for Change.
Low Pay Commission to continue longstanding approach of assessing the impact of wage reforms on different sectors, ensuring recommendations support both economic growth and fair pay.

The Westminster Government’s manifesto commitment to deliver a genuine living wage for working people took a step closer today (5 August) as it set out new considerations for the Low Pay Commission (LPC) when recommending next year’s National Living Wage and National Minimum Wage.

Around 3 million workers benefitted from last year’s decision to include the cost of living in the LPC’s remit for the first time. This led to a record cash increase in the Minimum Wage for apprentices and those under 18, and a £1,400 annual boost for full-time workers on the National Living Wage from April.

Higher wages for the lowest-paid workers not only provide greater financial security for families but also mean more money in the pockets of working people to spend on the things they need – supporting businesses and driving economic growth across the country as part of the Plan for Change.

With younger workers being held back by discriminatory age bands, the updated LPC remit will drive forward the Government’s commitment to delivering a single adult pay band.

The LPC will consult with employers, trade unions and workers on narrowing the gap between the 18–20-year-old rate of the National Minimum Wage and the National Living Wage and will put forward recommendations on achieving a single adult rate in the years ahead.

The remit will also ensure that the LPC continues to actively consider the cost of living in its recommendations for National Living Wage rates to apply from April 2026.

Business Secretary Jonathan Reynolds said: “Low pay drags down living standards for our workers and in turn hurts our high streets and local businesses.

“This Government’s Plan for Change will put money back in people’s pockets, with this new remit marking the next step in considering how we ensure a fair deal for our lowest paid workers while maintaining a competitive economy that boosts businesses and their employees alike.”

Deputy Prime Minister Angela Rayner said: “We promised to make low pay a thing of the past, and deliver a wage people can live on, and that is exactly what this government is determined to deliver.

“We have already taken bold action to Make Work Pay with more than 3 million workers seeing a huge boost in their pay following our increase to National Minimum and Living Wage.

“This remit is the next milestone in our plan to get more money in working people’s pockets, raise living standards in every part of the UK, and get our economy growing.”

Chancellor of the Exchequer Rachel Reeves said: “We are delivering on our promise to make sure every worker receives a fair wage.

“Fair pay which supports working families is integral to our Plan for Change, because when working people are properly rewarded with more money in their pockets, businesses thrive and our entire economy benefits.

“To ensure the right balance is struck between the needs of workers, business affordability, and the wider economy, the LPC is being asked to consult on several issues before recommending the new rates.”

Baroness Philippa Stroud, Chair of the LPC, said: “We are pleased to receive our remit from the Government. Already, since the beginning of the year, we have spent significant time speaking with workers and employers, to understand the pressures in the economy and the effects of the most recent increases in the minimum wage. We have held a successful call for evidence and received detailed submissions from all sides.

“Our recommendations on the minimum wage are always finely balanced. More than ever, it is important that we draw on first-hand evidence from those affected by our decisions.

“I look forward to working with the rest of the Commission over the autumn to reach a shared view on this evidence and deliver our advice to the Government in October”

TUC General Secretary, Paul Nowak said: “Boosting the minimum wage isn’t just good for workers – it’s good for business too. When low-paid workers have more money in their pockets they spend it locally – supporting shops, cafés and high streets.

“That’s why the government is right to set out its ambition to raise the floor of the minimum wage and end the outdated and unfair youth rates.

“The minimum wage has been one of the big success stories of the last 25 years – lifting pay at the bottom and proving the doom-and-gloom merchants wrong. But it’s important that it keep rising so that it better reflects what it actually costs to get by in Britain today.

“A bolder, more ambitious minimum wage isn’t a risk. It’s the next step in building a fairer, stronger economy where hard work is properly rewarded.”

Pay day boost for thousands of Scottish workers

National Minimum Wage rise hits payslips

· National Minimum Wage and National Living Wage increase puts more money in the pockets of 220,000 of the lowest paid workers in Scotland.

· Real terms pay rise will boost wages by £1,400 per year for an eligible full-time worker, boosting living standards and kickstarting growth as part of the Plan for Change.

· Visit Check Your Pay to make sure you don’t miss out.

Up to 220,000 workers in Scotland have started to receive boosted payslips as workers begin to see the benefits of the new National Living Wage and National Minimum Wage rates taking effect.

The changes will help provide families with better financial stability and living standards, delivering real terms pay increase of £1,400 per year for eligible full-time workers, supporting the Government’s plan to kickstart growth as part of the Plan for Change.

This uplift delivers better financial security for working people and allows for further workers to potentially benefit from positive spill-over impacts including possible wage increases for those already earning more than the legal minimum.

Employment Rights Minister Justin Madders said: “Workers across the country are beginning to receive the much-needed boost to their pay slips, as our Plan for Change is putting more money into their pockets.

“By ensuring a hard day’s work is rewarded with a fair day’s pay, we’re raising living standards millions of families and ensuring that everyone is a part of this government’s mission to deliver economic growth to every part of the UK.

“If you haven’t already, check your pay to ensure you aren’t missing out on a well-deserved pay rise for work done from 1^st April.”

To ensure workers were fairly compensated, for the first time this Government instructed the Low Pay Commission, the body which recommends the wage rates, to include the cost of living and inflation in its assessment.

On top of this, the Employment Rights Bill, a key pillar in the Plan to Make Work Pay, will release an additional £600 a year to some of the lowest paid workers. This will ensure that these workers get receive an uplift to wages that delivers better quality of life.

Workers in Scotland have earned this pay rise and they need to make sure they get it. Visit gov.uk/checkyourpay to check if you are eligible.

The full increases from 1 April this year were:

o National Living Wage (21+) has increased 6.7%, from £11.44 to £12.21 per hour

o National Minimum Wage (18-20) has a record increase of 16.2%, from £8.60 to £10 per hour

o National Minimum Wage (under 18) has increased 18%, to £7.55 per hour

o Apprentice Rate has the largest increase of 18%, from £6.40 to £7.55 per hour

o Accommodation Offset of £10.66 per day

· The Accommodation Offset is the maximum daily amount which an employer can charge without it amounting to a reduction of pay for National Minimum Wage purposes.

· If someone is concerned that they’re not being paid the correct wage, they should speak to their employer. If the problem is not resolved, they can contact Acas (the Advisory, Conciliation and Arbitration Service) by phoning 0300 123 1122, or complain to HMRC in confidence using the link www.gov.uk/minimum-wage-complaint. HMRC looks into every single complaint.

· You can find out more about the minimum wage, and whether you’re receiving what you’re entitled to:

o Check your pay – Check your pay

· You can report possible underpayment of the National Minimum Wage to the ACAS Helpline and also online to HM Revenue and Customs (HMRC):

o https://www.gov.uk/pay-and-work-rights

o https://www.gov.uk/government/publications/pay-and-work-rights-complaints

Ian Murray underlines Westminster government mission for growth

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%.

Scottish Government to increase financial support for Scottish students

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.”

Thousands of Edinburgh employees benefit from fair pay after Living Wage campaign

“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.

Living Wages towards Living Pensions

News from THE POVERTY ALLIANCE

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.

Biggest ever cash increase in National Living Wage to boost pay for millions

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.

Scottish Living Wage award for Edinburgh action group

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.”

Cllr Kate Campbell: “We’re making Edinburgh a Living Wage city”

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.

This article first appeared in the Evening News

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.”