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 PieministerFred 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.”

City of Edinburgh Council “must listen and act on community views”

It is crucial that the City of Edinburgh Council continues to engage with and then act on the views of its residents and communities as it considers options to make the significant savings needed, says spending watchdog the Accounts Commission.

The council isn’t alone in Scottish local government in having to make substantial savings. But the scale of savings needed – over £100 million by 2029 – means senior officers and councillors must work together to find sustainable ways to deliver differently, improve performance and ultimately reduce costs. 

The council has ambitious plans to borrow money to improve housing and school buildings. But this will need to be managed carefully to ensure that plans are affordable and don’t have a detrimental impact on services.

Progress has been made since the Commission last reported, and many services are performing well. But now the council must address declining performance in areas including housing, waste and some aspects of street cleaning.

The Accounts Commission recognises the council’s ambitious plans to end poverty and become a net zero city by 2030.

Given current progress, however, there remains a significant amount of work to achieve these targets, not least in establishing cost implications.

Jo Armstrong, Chair of the Accounts Commission said: “We cannot underestimate the scale of financial challenge.

“The council has successfully achieved savings over recent years. But given increasing demand and financial pressures, the council must accelerate its transformation and change programme.

Listening to and acting on the views of staff and local communities will be vital.

“The council has real opportunities, including the potential to raise more income. It shouldn’t use the potential of future income, however, to delay making difficult decisions now as challenges will only intensify.”

Council Leader, Cammy Day, said: “We’re encouraged by the Commission’s findings, which recognise the good progress the Council has made since 2020.

“We’ve delivered a lot of change at a time of huge pressure on our services and on our budget, but we’ve stayed true to our priorities of protecting day-to-day services and investing in a fairer, greener future. Our aims to eradicate poverty and become net-zero by 2030 are ambitious, but we need to be aspirational to make sure they stay at the top of our priority list.

“Our focus on getting the basics right for our residents, meanwhile, is also bearing fruit with Edinburgh now a top performing Council in Scotland for street cleanliness, and continued improvements in key areas such as road conditions.

“We acknowledge, however, that there is still much more to be done and we’ve targeted substantial additional resources into key services such as housing, where we know performance has to improve if we are to tackle Edinburgh’s housing emergency.

“We’re continuing to adopt new technologies to make it easier for residents to come to us for help and, as recognised in the report, we’re looking forward to realising the huge benefits our Visitor Levy proposals will bring from 2026 – which we forecast will raise over £100m for the city by 2030.

“It’s no secret, however, that ever more difficult financial decisions lie ahead. Despite the unique pressures that come with being Scotland’s capital city, Edinburgh remains the lowest funded council per head in Scotland, which is having a huge impact on our finances.

“The latest projections show that we will face a budget shortfall of at least £30m next year and we’ll need to work even harder to ensure we can keep on delivering best value for the people of Edinburgh.”

Reminder: Community Planning ‘Transformation’ Events

Invitation to Participate in Community Planning Transformation and Improvement Stakeholder Engagement Session

The Edinburgh Partnership agreed to look afresh at the role of Community Planning in Edinburgh to maximise the relationships between public sector agencies and the voluntary and community sectors to address poverty and inequality and the climate and nature emergency.

We need your views to help shape the future of community planning in Edinburgh.

These sessions aim to bring together key partners to discuss, plan, and drive forward positive changes for communities. Your insights and contributions are highly valued, and we would be pleased if you could join us.

Spaces are limited, so we encourage you to book your place as soon as possible to secure your spot at your preferred session.

To register, please email communityplanning@edinburgh.gov.uk  with your name, contact details, and the date of the session you would like to attend:

Wednesday, 23rd October | 12:30 PM – 3:30 PM | St. Bride’s Community Centre

or

Thursday, 24th October | 10:00 AM – 1:00 PM | West Pilton Neighbourhood Centre

or

Monday, 28th October | 3:00 PM – 5:00 PM | Microsoft Teams

Challenge Poverty Week: Change is possible, says Public Health Scotland

This Challenge Poverty Week, Public Health Scotland’s CEO, Paul Johnston explains how PHS are advocating for a Scotland where everyone has access to an adequate income to enable a healthy standard of living:

Living in poverty is detrimental to health and one of the main causes of poor health and health inequalities, with negative consequences for children and adults. Policy changes which impact on the drivers of poverty (income from employment, income from social security and the cost of living) have the potential to impact on population health and health inequalities.

Since 2010 a series of changes have been implemented to the UK (reserved) social security system. An intention of The Welfare Reform Act 2012 which triggered these changes was to help people into work and reduce poverty for adults and children, which in turn would lead to improvements in health.

Policies included reduced financial support to low-income families with three or more children and increased conditionality for lone parents. These are families who already have an increased risk of living in poverty.

Since 2013, Public Health in Scotland (PHS) has been monitoring the economic and health trends associated with Welfare Reform. Our latest report Improving Lives? highlights that the anticipated improvements to income and health from Welfare Reform have not been realised for people in Scotland.

Aspects of health have worsened or remained unchanged since 2010 and importantly, many of these trends pre-date the COVID-19 pandemic. These trends were also observed for the rest of the UK. A forthcoming PHS systematic review found that for people exposed to the changes, UK Welfare Reform made mental health worse, and had no positive effect on physical health.

While some working-age families and children benefitted from Welfare Reform (through increased employment), these gains were offset by those who were harmed by the changes.

This is concerning, especially as our report shows that population groups most likely to be affected by these changes are the groups who are already more likely to be at risk of or experiencing poverty. We know from 2013 that the relative child poverty rates in Scotland increased after a period of decline.

Evidence also tells us that mental health problems became more prevalent, especially after 2015, while health inequalities have risen. The period also saw stalled improvement or worsening trends in financial insecurity and long-term sickness.

This Challenge Poverty Week, we are advocating for a Scotland where everyone has access to an adequate income to enable a healthy standard of living. This will help to create a Scotland where everybody thrives.

A number of changes are needed to make this happen. These include promoting quality employment which supports good health. Almost 19% of employees in Scotland aged 18-55 are in poor quality work, and most working-age adults and children in poverty live in a household where someone works.

We also need to ensure our social security system protects people’s mental health and wellbeing. This could include an Essentials Guarantee to protect people from hardship, supported by 72% of the population.

It could also include improved support for working-age adults with health problems, especially mental health problems.

We know that change is possible.

During 1997–2010 policy choices by the UK government directed financial support at children and pensioners and as a result poverty fell for both of these groups. This period also saw increased employment rates translate into improved mental health for lone parents. This proves that we can make a difference to people’s lives through social security and employment policies.

In Scotland, child poverty rates are lower than many other UK nations. In Scotland, we are doing things differently to tackle child poverty.

The Scottish Government estimates that around 100,000 children will be kept out of poverty as a result of the Scottish Child Payment this year and low-income families are being further supported with the costs of pregnancy and looking after children through Best Start Grants and Best Start Foods payments.

Scotland is delivering a strengthened employment offer to parents, to provide holistic support and address specific barriers to enable more parents to gain and progress in work. This along with focussed action to create a Fair Work Nation, which includes supporting more employers to pay the living wage, provides a platform to build on, to support more parents to escape poverty.

Learning and evidence from past UK policy approaches and Scotland’s actions to tackle child poverty should be used to inform further policy changes to address poverty and improve health.

It is imperative that providing an effective social security safety net for when families need it and creating high quality, flexible employment opportunities for parents, will be central to the UK’s child poverty strategy going forward.

The rich get richer, but 80,000 Edinburgh citizens live in poverty

Efforts to tackle poverty in Edinburgh have put almost £24 million into the pockets of residents who need it most, according to a report published yesterday (Friday 11 October).

Edinburgh’s latest End Poverty Annual Progress report looks at how partners are responding to the recommendations put to the city by the Edinburgh Poverty Commission in 2020. 

Around 80,000 people in Edinburgh are currently living in poverty, including 20% of all children.  

The report reveal grants and welfare advice has increased by 20% over the last year, helping residents to access millions of pounds in unclaimed benefits, and that positive collaboration between the council and partners has also led to:

  • Supporting 5,000 people into work or learning (a 19% increase on the previous year)
  • Driving down bills for 900 homes thanks to new energy efficiency measures
  • Securing savings worth £206k for tenants through Energy Advice Support (an average of £428 per household)
  • Helping to prevent homelessness for 461 households
  • Over 9,000 free school meal payments and nearly 8,400 clothing grant awards
  • Supporting 95% of all pupils to reach positive destinations after school
  • Encouraging payment of the living wage (up 80 in a year to 720 accredited employers)
  • Agreeing Council contracts committed to paying the real Living Wage (96% of suppliers, up 14%)
  • Introducing a new Regenerative Futures Fund, a third sector led programme bringing £15m of new investment

Marking this year’s findings, shared during Challenge Poverty Week 2024, the Council Leader Cammy Day made a visit to Fresh Start in West Pilton.

One of the many partners involved in helping to tackle poverty in Edinburgh, Fresh Start is a charity which offers a food pantry and helps people who have been homeless with essential supplies. 

The full report will be considered by members of the Policy and Sustainability Committee when it meets on Tuesday 22 October.

Council Leader Cammy Day said: “We have shown that when we come together as a city, we can make a real difference. And this difference really can be life changing.

“We’ve put more money directly into the pockets of those people who need it most this year, also helping 5,000 people into work or learning. We’ve retained Edinburgh’s 95% record for positive destinations for school leavers, and as part of our Housing Emergency we’ve been able to build more new Council homes this year than the previous two years combined.

“The Council’s budget decision to allocate an additional £500,000 investment in actions to address poverty this year is also helping to increase support to foodbanks and other frontline services tackling poverty.

Yet, for all our combined efforts, poverty remains one of the biggest challenges of our times. There are 80,000 people in our city who are living on incomes below the poverty threshold, and they are hurtling towards another winter of money worries.

“Without additional urgent action, one in five children in this city – Scotland’s most affluent city – will continue to grow up in poverty. So, we have clear asks to Scottish and UK Governments on the support we need to meet the poverty targets we have set together. We also know there is much more we can do by working with local partners, so we’ll work on a refreshed partnership led programme to improve the impact of our work to prevent destitution.

“Next year will mark the mid-point between the publication of the Edinburgh Poverty Commission’s final report and our city’s target to end poverty by 2030. We must be more motivated than ever to take all steps necessary to give the very best future we can for Edinburgh’s children and young people.”

Fanette Genais, Fundraising Manager for Fresh Start, said: Our food pantry and shop allows people to choose items they need and our starter packs help people who have been homeless and who don’t have many belongings to set up a new life, from white goods to bedding.

“I’m really pleased to see the new Regenerative Futures Fund set up and I’m looking forward to seeing it tackle poverty in our city.”

Charity urges greater support for those with arthritis

Versus Arthritis, the leading charity supporting those with arthritis and other musculoskeletal (MSK) conditions in Scotland, is marking World Arthritis Day tomorrow (Saturday 12 October) with a call for greater community-based support for children, young people and adults living with arthritis.

Marking the day, Versus Arthritis has published the report, Putting the Pieces Together in Drumchapel, which shows how tackling MSK conditions is about ‘more than just healthcare’ and that support within and by communities is vital in improving the lives of Scots living with arthritis.

A staggering one in three people in Scotland are affected by musculoskeletal (MSK) conditions like arthritis, which includes problems that affect our bones, joints and muscles. Unfortunately, MSK conditions will remain one of the leading causes of disease and injury in Scotland over the next 20 years.

Arthritis is often debilitating, isolating and can dramatically impact people’s quality of life. In fact, those with arthritis are 20% less likely to be in work and around one in five people with arthritis experiences anxiety and depression. The impact can also be felt by businesses, as MSK conditions are the third most common cause of sickness absence, with over 20 million working days lost per year.

MSK conditions are also more common in areas of greater poverty, and with Scotland facing some of the worst health inequalities in Europe, according to Public Health Scotland, the challenge is to ensure that care and support across the country is equitable and meets the needs of people locally.

Drumchapel is one such area where there are high levels of deprivation and associated health problems, and where there are gaps in supporting people with arthritis. But crucially, as this report points out, it is also an area of mutual support, community organisation, partnership and networks. There are opportunities to make a real difference.

In line with this year’s World Arthritis Day theme (Informed Choices, Better Outcomes), the conclusion of the Versus Arthritis report is that MSK conditions must be understood in terms of the places where people live, meet and interact, including how they access and use information about support and care.

Alan McGinley, Policy and Engagement Manager Scotland, said: “This Versus Arthritis report highlights that ‘softer services’, such as community and peer support groups, matter greatly, and that alternatives to formal care that support wellbeing are important in living well with arthritis.

“That is why Versus Arthritis is calling for a ‘whole community’ approach in looking after the wellbeing and health of those with MSK conditions. We firmly believe that by ensuring our healthcare services are understood in the context of community networks and support, we can build a future where people with arthritis can live the lives they choose.”

Edinburgh School Uniform Bank needs your outgrown coats

⭐We really need your outgrown coats!⭐

Clear out your cupboards and donate pre-loved coats to ESUB. We work with a number of community spaces around the city offering free to access rails of coats and warm clothing. The need is greater than ever.

We are looking for all child and adult sizes to keep up with demand from our community partners.

👉Information about our drop off points can be found here:

Holyrood votes for action on Winter Fuel Payment

UK Government urged to reverse ‘damaging’ decision

The UK Government’s decision to introduce means testing for the Winter Fuel Payment must be reversed, according to MSPs.

Following a debate as part of Challenge Poverty Week, the Scottish Parliament voted in favour of a motion that the UK Government reverse its decision to restrict entitlement to the benefit. Labour MPs Richard Leonard and Alex Rowley supported the motion.

Fourteen Scottish Labour MSPs, including Edinburgh MSPs Sarah Boyack, Foysol Choudhury and Daniel Johnson, voted with their leader Anas Sarwar against the motion.

First Minister John Swinney said that as a result of this damaging decision, Scottish Government analysis indicates roughly 900,000 Scottish pensioners will no longer be entitled to support with heating costs this winter.

Commenting after the debate, the First Minister said: “More austerity is not the solution to the restrictive fiscal environment in which the UK Government, and governments across the globe, find themselves.

“It is a mistake to think that action to tackle poverty for our most vulnerable citizens are costs to be mitigated. These measures are investments in our people, our communities and our nation’s future. I have urged the UK Government to deliver an Autumn Budget that recognises this reality.

“Scotland’s Parliament has spoken, and I repeat my call for the UK Government to reverse its damaging decision to restrict entitlement to Winter Fuel Payments for pensioners.

“The Scottish Government will continue to support households with their energy bills and tackle fuel poverty. However the UK Government must ensure their budget in October provides the necessary support to those who need it most.”

Free winter coat exchange launches at Fort Kinnaird tomorrow

The Leith Collective at Fort Kinnaird is launching its annual winter coat exchange tomorrow (Tuesday 1st October) to provide the local community with access to pre-loved coats for free during the colder months.

The independent store, located between Mango and WHSmith, is inviting local residents and businesses to donate good quality winter coats they no longer need, with men’s and children’s coats in highest demand.

Members of the local community will then be able to browse the collection of coats instore and pick up one up for themselves and their family, completely free of charge, with no questions asked.

The initiative builds on last year’s success, where more than 10,000 coats were donated and distributed across the region.

Sara Thomson, founder of The Leith Collective, said: “People often discard their old coats or leave them hidden at the back of a wardrobe when they are still in perfectly good condition and could provide someone else warmth over the winter months.

“A comfortable winter coat is a basic necessity, but for families that have been continually stretched, it can be yet another essential item that they are having to sacrifice, so we invite anyone who needs support to make use of the service this year.

“We’re also very grateful to everyone who donated last year, and hope people are able to support again this year, our only ask is that the coats donated are still in a good quality condition and that all personal belongings have been removed from the pockets.”

Liam Smith, centre director at Fort Kinnaird, said: “We’re incredibly proud of our partnership with The Leith Collective and the hugely important initiatives Sara and the team run all year round to benefit our local community – and the winter coat exchange plays a huge part in this.

“Not only has it provided valuable support to those who need it most for three years running, it also offers shoppers the opportunity to make sustainable choices for pre-loved coats that they no longer need. I look forward to seeing the impact I’m sure it will have again this year.”

The Leith Collective showcases the work of more than 300 artists and makers from all over Scotland, brought together by a common aim to reuse, recycle, and reclaim. It resells items that may otherwise have been destined for landfill and all of its stores also host a range of creative workshops focused on sustainability.

For details on participating in this year’s coat exchange or The Leith Collective’s creative workshops, email Info@theleithcollective.com or visit www.leithcollective.co.uk.

For more information about Fort Kinnaird: www.fortkinnaird.com

More than 10,000 free coats to be redistributed to those in need this winter 

The Leith Collective launches Winter Coat Exchange to coincide with energy price cap rise

On Tuesday 1st October 2024, the energy price cap will rise by 10%, taking a typical annual household bill to £1,717. One Edinburgh Community Interest Company predicts this increase will push many struggling families over the edge.

To help in the fight against poverty, The Leith Collective is launching its Winter Coat Exchange on Tuesday 1st October to coincide with this energy price cap rise. Having redistributed almost 10,000 free coats last winter, founder Sara Thomson predicts even more will be needed this year to provide warmth and comfort to those in desperate need.

According to the Joseph Rowntree Foundation, more than one million people live in poverty in Scotland, with nearly half of those people (490,000) living in very deep poverty. The energy price cap rise will hit those trapped in poverty the hardest and will no doubt force many to sacrifice basic essentials such as a warm winter coat.

And so, The Leith Collective is calling on businesses, organisations, charities and community groups across Scotland to register as an official Winter Coat Exchange Collection Point. That way, they can redistribute good quality coats to those who need them – free of charge, no questions asked – and provide much-needed comfort this winter.

Speaking ahead of the launch, Sara said; “This is the fourth year of running the Winter Coat Exchange and sadly I think our help will be needed more than ever this year.

“So many people are already at breaking point because of the cost of living crisis, and now gas and electric bills are set to rise yet again. Last year we redistributed almost 10,000 coats to those in need and we’re bracing ourselves for even greater demand this winter.” 

One of the first organisations to sign up to the scheme this year was the Edinburgh CIC, Let the People Sing. Founder Vicky Scoular said; “Going without basic necessities such as a warm winter coat can have a hugely detrimental impact on a person’s dignity and on their mental wellbeing.

“So we’re proud to be playing our part in the fight against poverty by signing up to be an official Winter Coat Exchange Collection Point and we implore as many other local organisations to do the same so we can make a real difference.”

Organisations can sign up to become an official Winter Coat Exchange Collection Point at www.we-relove.com, the sustainable online marketplace from The Leith Collective.

The website also enables individuals in need to enter their postcode and find their nearest collection point, so they can get a quality coat without charge and without judgement.