Katherine Chapman, Director, Living Wage Foundation:
Over the past few days there has been renewed interest in the wages of those at the bottom end of the pay scale. We welcome this focus on a group of workers who are increasingly finding that their wages simply don't cover the cost of living.
What's become clear is that the economic situation, with inflation rising and wages not keeping pace, means that those earning the least are being squeezed even harder, with little hope of respite any time soon.
Recent announcements from across the political spectrum have looked to tackle this challenge by increasing the minimum wage; Amidst the predictions and pledges on what a minimum wage could look like in 2020 or 2022, there's a growing movement of responsible employers who aren't waiting for government legislation, instead, they are all already voluntarily paying their employees, including sub-contracted staff, at least the real Living Wage which is independently calculated based on what it costs to live. The rates are currently £8.45 p/h across the UK and £9.75 p/h in London, reflecting the higher living costs of the capital.
Over 3,000 organisations have signed up as accredited Living Wage employers committed to following the real Living Wage rate, uplifting the pay of their staff each year. The rates are calculated based on the best available evidence about living standards and overseen by the independent Living Wage Commission, a leading group of academics, business leaders and civil society representatives, to ensure the wage rate is a robust and fair figure. It is not predicted; it is based on independent calculations.
Paying the real Living Wage isn't always a simple task, businesses tell us that achieving Living Wage accreditation has been a long-term goal and an indicator of success, others view it as a basic element of the viability of their business model. For all it is a reflection of their values as an employer.
We also know that paying the Living Wage is both good for business and people; with 93% of accredited Living Wage employers reporting business benefits, ranging from better recruitment and retention to increased productivity and morale.
No doubt the debate around what level statutory wages should sit at will continue in the weeks, months and years to come. In the meantime, we should champion those businesses that are going above and beyond what's legally required of them and supporting those at the lowest end of the pay-scale to be rewarded fairly.