Record number of Real Living Wage employers in Scotland
The number of Scottish employers registered as paying the real Living Wage has hit a new high of 3,500.
The milestone was reached ahead of the tenth anniversary of Living Wage Scotland, a programme launched by Poverty Alliance with Scottish Government funding to encourage more firms to pay the real Living Wage. The rate is reviewed annually and currently stands at £12 an hour.
Proportionately, Scotland has around five times more accredited real Living Wage employers than the rest of the UK. Latest statistics also show nearly 90% of workers aged over 18 in Scotland are paid the real Living Wage or above – the highest percentage in the UK.
On a visit to one of the most recently accredited firms, Atlas Winch & Hoist Services in Biggar, South Lanarkshire, Wellbeing Economy Secretary Màiri McAllan thanked the growing number of employers committed to keeping pace with the real Living Wage.
Ms McAllan said: “Fair Work is at the heart of the Scottish Government’s ambition to move towards a wellbeing economy that benefits employees and the planet alongside traditional economic indicators.
“More than 64,000 workers have had a pay rise as a result of accreditation, making a real and ongoing impact for people in Scotland.
“All public sector grants in Scotland now include a requirement for recipients to pay the real Living Wage and provide appropriate channels for workers to raise concerns. We firmly oppose the inappropriate use of zero hours contracts and other types of employment that offer workers minimal job or financial security.
“While employment powers are reserved to the UK Government, we will continue to use our Fair Work policy to drive up labour market standards for workers across Scotland. Fair Work is good for workers, good for employers and good for the economy.
“Every firm which has declared its intention to be a real Living Wage employer provides peace of mind for its staff, particularly during the cost of living crisis. I thank all the 3,500 Scottish businesses that have now taken that step.”
Atlas Winch & Hoist Services director Conor Lavery said: “We have long paid at least the real Living Wage as it helps to attract and retain a motivated team. As a rural company it is very important to retain the right people and the real Living Wage helps support this.
“We recently decided to seek real Living Wage accreditation to signal our ongoing commitment to our staff, some of whom have been with us for more than 20 years. We want to do as much as we can to support our workforce and try to be as flexible as we can, understanding life’s challenges outside of work.”
Poverty Alliance director Peter Kelly said: “The Poverty Alliance believes in a wellbeing economy beyond the injustice of in-work poverty.
“Thanks to the leadership of more than 3,500 accredited Living Wage employers in Scotland we are now able to celebrate a decade of incredible impact. The real Living Wage provides a stronger foundation for workers to build better lives for themselves and their households, and a better Scotland for all of us.
“We commend every employer that has chosen to join the Living Wage movement: they are paving the way to a new kind of economy, where more workers earn what they need to thrive, and we encourage employers not yet accredited to get in touch.”
Applicants for public sector grants must support better pay and conditions for workers in order to qualify, under new strengthened criteria which has come into force.
From today, organisations will need to demonstrate they pay at least the real Living Wage and provide channels for workers to have an effective voice, as a condition of the application.
The requirement forms part of the Bute House Agreement, a plan to work together with the Scottish Green Party to build a fairer and more equal economy.
This applies to organisations receiving public sector grants, and limited exceptions may be applied to ensure the measure remains proportionate.
Wellbeing Economy and Fair Work Secretary Neil Gray said: “Public sector funding should be used for the wider benefits needed in a wellbeing economy, such as the promotion of fair work – including the creation of more high quality, well paid jobs. This in turn will support stronger businesses, and vibrant, healthy communities.
“By extending the reach of our Fair Work First criteria – which has already been applied to some £4 billion of public funds since 2019 – we can better tackle the cost crisis, poverty and social inequalities.”
Green Skills, Circular Economy and Biodiversity Minister Lorna Slater said: “While this is essential to improving worker experience, research has also shown businesses with stronger employee voice and representation perform better and are more productive.
“We will work with employers, workers and trade unions connected to organisations applying for a public sector grant to ensure we are continuing to improve terms and conditions, worker wellbeing and to develop progressive and fairer workplaces.”
A key factor in the bid to end poverty in the Capital by 2030 is the steps being taken by the Council and partners to prevent and mitigate the impacts on women.
This is closely linked to child poverty, given there is a proportionately high share of caring responsibilities adopted by women in general – 90% of lone parents are women, 38% of those in Scotland live in poverty.
Women have also been disproportionately affected by the cost of living crisis and, alongside childcare, these patterns are strongly driven by gender inequalities in the workplace. Women account for 60% of all low paid workers in Edinburgh and 78% of all part time workers.
In response to these challenges, actions in the Council’s End Poverty in Edinburgh Delivery Plan, and other plans, which are expected to prevent or mitigate the impact of poverty on women and girls, include:
Raising awareness of the gender impacts of poverty
Helping to increase incomes for women in poverty
Reducing the costs and impact of childcare responsibilities
Council Leader Cammy Day said: “Tackling poverty is one of our key priorities as a Council and our 2030 target is ambitious but one I’m convinced can be achieved. We have to act decisively if we’re to eradicate poverty in Edinburgh.
“It’s a fact that women are more likely to experience poverty and thus it was important that we had a separate update on specific actions being taken to help to further highlight this issue.
“It’s also of course not just the material constraints of living in poverty that make things hard, it’s the emotional strain and it is important that we do all we can to tackle this.
“This update on actions currently underway was well received by councillors who fully support the work of the End Poverty in Edinburgh Delivery Plan which gives an important overview of where we are. We know that we can’t achieve our goals in insolation.
“That’s why we are working with partners such as the End Poverty Edinburgh citizen’s group who help us make sure that the real experiences of people who live in poverty are at the centre of shaping the actions we take to tackle poverty and inequality in the capital city.
“Analysis of these actions will be continued, and I look forward to the update on the wider End Poverty in Edinburgh progress later in the year where will look at all households and priority groups.”
NO Poverty concerns for one new council employee. Edinburgh’s interim Director of Adult Social Care will be paid no less than £403,390 A YEAR!
I’m sure that will go down really well with the capital’s care workers, the majority of whom are women! – Ed.
Improving pay and working conditions through public sector investment
Organisations applying for public sector grants will need to pay at least the real Living Wage and provide channels for staff to have a say in the workplace from July 2023.
The condition applies to organisations receiving grants from the Scottish Government, enterprise agencies and public bodies. Exceptions may only be applied to emergency funding and where an organisation is heavily dependent on grant funding and paying the real Living Wage would threaten its survival.
The new requirements form part of the Scottish Government and the Scottish Green Party Parliamentary Group Bute House Agreement, a plan to work together to build a fairer and more equal economy.
Employment and Fair Work Minister Richard Lochhead and Green Skills, Circular Economy and Biodiversity Minister Lorna Slater visited MiAlgae, an Edinburgh industrial biotechnology company that has received public sector funding and whose staff are paid at least the real Living Wage and have a voice in the workplace.
Mr Lochhead said: “The Scottish Government is committed to using public sector investment to drive up wages, tackle inequalities and give employees an effective voice.
“This policy is a significant step in strengthening our fair work agenda. For example, in 2021-22 Scottish Enterprise issued £135 million in grants to 953 businesses.
“Fair work and fair pay are good for business. They help improve staff retention and productivity, reduce recruitment costs and contribute to a skilled and motivated workforce.
“Scotland is already leading the way on paying the real Living Wage. In 2022 a record 91 per cent of employees aged over 18 earned the real Living Wage or more in Scotland – higher than the UK as a whole and above any other UK country. There are more than 2,900 accredited real Living Wage employers, which is proportionately five times as many as in the rest of the UK.
“Grant conditionality will strengthen our vision that by 2025, people in Scotland will have a world-leading working life where fair work drives success, wellbeing and prosperity for individuals, businesses, organisations and society.”
Ms Slater said: “An effective voice for workers is vital to ensure better terms and conditions, worker wellbeing and developing progressive and fairer work places.
“The ability to speak, individually or collectively, and to be listened to, is essential to improving workers experience as well as improving organisational performance.
“We will work with employers, workers and trade unions, to continue improving the terms and conditions for employees of organisations applying for a public sector grant.”
MiAlgae Operations Director Dr Johann Partridge said: “At MiAlgae, the real Living Wage was something we have been fully committed to since the beginning. As an organisation our people are our most important asset and, for us, a happy and engaged team is crucial to our operations.
“Having open channels of communication between staff across every level and area of the business is something we are passionate about. We strive to ensure each member of our team feels empowered and confident to communicate and engage with each other about all elements of our work.”
But the national membership organisation for the voluntary sector, Scottish Council for Voluntary Organisations (SCVO), has raised concerns about those workers who could be left behind.
In a statement, SCVO said: “SCVO agree that Fair Work for Scotland’s voluntary sector workforce should be a priority. However, it is unclear how the sector will be supported to fund this change.
“Years of underfunding, followed by Covid-19, and the running costs crisis, mean that for many voluntary sector employers paying the Living Wage cannot be achieved without additional resources.
“A significant number of people employed in the sector are funded by public sector grants and contracts. SCVO have made clear that to support organisations to pay the Living Wage, public grant funding and procured contracts should build in a Living Wage uplift to ensure organisations delivering public services and other vital support are able to pay the Living Wage.
“We look forward to more details about how these plans will be funded in the upcoming Scottish Budget.
Concerns were also raised that plans to ensure Scotland’s voluntary sector workforce are paid at least the Real Living Wage apply only to staff engaged in grant funded activities creating the potential for pay inequality within and between voluntary organisations.
SCVO encouraged the Scottish Government to engage with voluntary sector funders and employers to ensure that all of the sector’s 135,000 employees can be paid at least the real Living Wage.
The organisation added: “The voluntary sector workforce makes a huge contribution across Scotland, offering a lifeline to people, families, and communities as the cost-of-living crisis bites. This lifeline shouldn’t need to be extended to voluntary sector staff.
“Scottish Government need to work with local government, funders, and crucially, the sector, to ensure that voluntary sector organisations have the support they need to pay the Real Living Wage.”
A record proportion of employees in Scotland are being paid the real Living Wage (rLW) or more, new figures have revealed.
The Office for National Statistics’ Annual Survey of Hours and Earnings shows 91% of employees aged 18 and over earned at least the rLW in 2022, an increase from 85.5% in 2021 and the highest proportion since the rLW series began in 2012.
In comparison, 87.5% of employees aged 18 and over in England are paid the rLW or more, 88.2% in Wales and 85.4% in Northern Ireland.
The ONS survey also confirms that the Gender Pay Gap is lower in Scotland than across the UK as a whole. For full-time employees the gap is 3.7% compared with the UK figure of 8.3%.
The Scottish Government is committed to tackling the cost of living crisis with a Fair Work approach, ensuring workers are paid at least the rLW – currently £10.90 per hour – and supporting more women into jobs through flexible working opportunities.
Minister for Employment and Fair Work Richard Lochhead said: “The Scottish Government’s commitment to promoting payment of the real Living Wage is a fundamental part of our National Strategy for Economic Transformation and a key cost of living policy to deliver a fairer and more equal society.
“The ONS figures confirm that Scottish employers are leading the way and we can be proud of the progress that has been made.
“There is still work to be done on tackling the gender pay gap, but we are taking steps to make this happen. We will publish our refreshed Fair Work Action Plan later this year, outlining the actions needed to close the gap further and create a more diverse and inclusive workplace.
“We will continue to work with employers, employability providers and partners to achieve this aim.”
Commenting on Tuesday’s labour market figures published by the ONS, which show real wages falling by 4.1 per cent (on CPI measure) as the cost of living crisis intensifies, TUC General Secretary Frances O’Grady said: “Everyone who works deserves financial security.
“But with the Bank of England predicting the worst decline in real pay for 100 years, energy bills soaring and a recession on the horizon, millions of working families are worried they won’t be able to keep their heads above water this winter.
“We need action from ministers now. They should cancel the increase to the energy price cap. And they must do far more to get pay rising – starting with boosting the minimum wage this autumn and giving public sector workers a decent pay rise.”
Zero-hours contracts
Commenting on the latest data on zero-hours contracts also published by the ONS yesterday, which show more than one million people are employed on these terms, Frances added: ““The government promised a high skill, high wage economy.
“But too many workers are stuck on insecure contracts that give them and their families no security. As the cost of living crisis escalates, the case for banning hated zero-hours contracts is stronger than ever.”
130% rise in working claimants during the pandemic
Low-income workers facing “perfect storm” this spring unless ministers improve “woefully inadequate” levels of support, warns union body
Cost-of-living crisis already depressing value of UC, TUC analysis reveals
*NEW POLL* shows many families already struggling to make ends meet
The TUC has warned that millions of low-income workers face a “perfect storm” this April with universal credit (UC) falling behind the cost of living as energy bills and taxes rise.
The warning comes as new TUC analysis reveals that the number of workers on UC has increased by 1.3 million since the eve of the Covid-19 pandemic.
The analysis of official statistics shows that over 2.3 million workers were in receipt of UC at the end of 2021, compared to just over one million on the eve of the pandemic in February 2020.
This represents an increase of 130 per cent over the last two years and means 1 in 14 (7.2 per cent) working adults now claim UC.
The TUC says the huge rise in UC recipients has been driven by working households being pushed into financial hardship during Covid, with millions facing a cost-of-living crunch this year.
Basic value of universal credit now lower than at start of pandemic
The TUC says that the basic value of UC is now lower than at the start of the pandemic as a result of UC not keeping up with inflation.
TUC estimates show that the value of UC has fallen by £12 a month in real terms when measured against CPI inflation and £21 a month when measured against RPI inflation compared to just before the pandemic (February 2020).
The TUC says this trend will only get worse in the months ahead with inflation forecast to rise further.
Struggling to cover the basics
The TUC warns that millions of low-paid families face a crunch point in April when energy bills and national insurance contributions go up – at the same time as UC continues to fall in value.
New polling – carried out for the union body before last week’s energy cap announcement and Bank of England forecasts – shows that many are already struggling to make ends meet:
One in eight workers (12 per cent) say they will struggle to afford the basics in the next six months. And a fifth of working people (22 per cent) say they’ll struggle to afford more than the basics.
Low-paid workers are more likely to be struggling. One in six (17 per cent) low-paid workers (those earning less than £15,000 a year) say they will struggle to afford basics in the next six months, and three in 10 (29 per cent) say they’ll struggle to afford more than the basics.
Parents of young children, disabled workers, key workers and BME workers are more likely to be struggling:
Nearly one in five families (18 per cent) with kids under 11 will struggle to afford the basics
Over one in five (21 per cent) disabled workers will struggle to afford the basics, compared to 10 per cent of non-disabled workers
14 per cent of key workers say they’ll struggle to afford the basics in the next six months, compared to 10 per cent of non-key workers
14 per cent of BME workers say they’ll struggle to afford the basics in the next six months, compared to 11 per cent of white workers
The poll also reveals that a fifth of workers (21 per cent) say they have Christmas debts to pay off this year – a number that rises to over a quarter (28 per cent) for workers with children of school age.
Better support needed
The TUC says the government must do far more to help struggling households to get through the months ahead.
The union body says the cost-of-living support announced by the Chancellor on Thursday is “woefully inadequate” and will provide families with just £7 extra a week – most of which will have to be repaid.
The TUC is also calling for UK Government to use the upcoming spring budget to:
Increase to UC to 80 per cent of the real Living Wage.
Introduce a windfall tax on energy companies, using the money to reduce household energy bills
Boost the minimum wage to least £10 an hour now
Work with unions to get pay rising across the economy
TUC General Secretary Frances O’Grady said: “Millions of low-paid workers face a perfect storm this April.
“At the same time as energy prices and national insurance contributions shoot up, universal credit is falling in value.
“The government must do far more to help struggling families get through the tough times ahead. The support package announced by the Chancellor last week is woefully inadequate.
“Universal credit urgently needs boosting and we need further action to reduce fuel costs for those battling to make ends meet.
“Oil and energy companies shouldn’t be making bumper profits, while many struggle to heat their homes.
“If ministers fail to do what is necessary, more households will be pushed below the breadline.”
On the need to boost pay, Frances added: “The best way to give working families long-term financial security is to get pay rising across the economy.
“That means increasing the minimum wage to at least £10 an hour now, and ministers requiring employers to negotiate sector-wide fair pay agreements with unions.”
With the role of the Councillor changing dramatically over the last few years, the time is right to review the job – and its pay, COSLA said this week.
COSLA President Councillor Alison Evison says there has to be a ‘realistic’ review of remuneration for the role, and called for the Scottish Government to look at Councillors’ salaries.
The current offering of £18,604 per year simply ‘does not cut the mustard,’ said Councillor Evison, especially given Councillors work on average, 38.5 hours per week according to our research.
COSLA is now calling for Councillors to be paid the Real Living Wage, as a minimum.
“In less than five months, on May 5, Scotland once again goes to the polls to elect the representatives who are the closest to their communities – their local Councillors.
“The Survey we are releasing today is a pivotal opportunity to think about the kind of modern Councillor we want, and about the changes that we need to make to attract candidates who could make a real difference to communities across the country.
“Together with my elected member colleagues, I already passionately believe in local democracy as a real positive force for good within our communities – that is why we stand for election. However to meet the next challenge we need realistic and proper remuneration that better reflects the role of a modern day Councillor.
“All of us within Scottish Local Government want to harness the power of a more locally democratic way of doing things, to enable a more diverse range of voices at the decision-making table, and to overhaul participation in council policy-making across the country – but people need to be properly remunerated to make this rhetoric a reality.”
Councillor Evison continued: “The current salary for a councillor is £18,604 and that quite frankly does not cut the mustard.
“A survey undertaken by COSLA as part of removing barriers to elected office work clearly shows that councillors from all political parties and none feel that the time has arrived for this new, radical and bold approach to Councillors’ remuneration as part of a wider package of action to increase Councillor diversity and address financial barriers to elected office for underrepresented groups.
“We are excited about what can be achieved, but we know that to attract a more diverse range of people to the role of the modern Councillor simply will not happen without a commitment from Scottish Government to look at Councillor remuneration.
“We are not asking for anything too bold, our starting point is that as a minimum, Councillors should be paid the Real Living Wage for hours worked.
“There would rightly be uproar if Councils did not pay their employees the Real Living Wage – therefore why not Councillors, who according to our survey findings work 38.5 hours per week?
“The Real Living Wage would still only put Councillors in the same bracket as the Care/Retail and Hospitality Sectors.”
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.
