The Living Wage Foundation welcomes the Mayor's Good Work Standard, because it will help reduce growing in-work poverty in the capital by tackling low pay and championing the real Living Wage.
London has more people earning less than they need to live on than any other UK region. Twenty-one per cent of the capital's working families are already living in poverty. Where once having a job was seen as way out of poverty, this is no longer the case, especially in London. Rising inflation, housing and transport costs mean those on the lowest pay, without the padding of surpluses and savings, are seriously at risk of being squeezed out of the capital. The case for making the London Living Wage central to the capital's adoption of a Good Work Standard has never been stronger.
In London:
- With 722,000 people in London earning less than the Living Wage the capital has vastly more people earning these rates than the next worst affected, the North West, with 643,000.
- A fifth (21 per cent)of Londoners in working families are in poverty, higher than the rest of England and London a decade ago
- In the three years to 2014, 27 per cent of people were in poverty after housing costs were taken into account, 7 percentage points higher than the rest of England.
- 60 per cent of non-pensioners in poverty live in a working family.
- 55 per cent of children in poverty are materially deprived ( they lack multiple basic items due to cost).
- 20 per cent of people in poverty are behind with a bill.
Director of the Living Wage Foundation, Katherine Chapman said:
"The Living Wage campaign began in East London over 15 years ago, and it's fantastic to now see Living Wage accreditation included in the Mayor's Good Work Standard. Over a fifth of people in working families are in poverty in London - it's shocking that this great metropolitan, inclusive and vibrant city still has an underclass of hard working families who can't afford even the most modest lifestyles."
"We hope the Mayor's Standard will encourage more of London's businesses to join the 1000 London Living Wage employers who are already paying all their direct staff and onsite contractors the London Living Wage. It's only fitting that a progressive and open London values all its workforce as partners in a robust and growing economy. Great cities reward a hard day's work with a fair day's pay."
Paying the Living Wage is also good for business. A 2016 survey of accredited Living Wage employers by Cardiff Business School found that 93 per cent said paying the real Living Wage benefited their business.
The survey found Living Wage accreditation:
- enhanced the organisation's reputation as an employer (86%)
- improved retention of employees receiving the Living Wage (76% of large organisations with over 500 staff)
- increased staff motivation as reported by 78% of large employers and 58% in total
- differentiated the organisation from others in the same industry (63%)
- improved relations between staff and managers (59%)
There are now more than 1,000 accredited Living Wage employers in London and more than 3,300 in the UK, paying all their staff including onsite contracted and third party staff, the real Living Wage. These include nearly a third of the FTSE 100, well-known names like IKEA, Aviva, Nationwide, KPMG and Chelsea Football Club as well as thousands of small employers.
Sir George Iacobescu, CEO and Chairman of Living Wage employer, Canary Wharf Group said:
"We are proud to have been the first major UK developer and construction company to have been accredited as a London Living Wage employer. The decision to pay a Living Wage underlines our appreciation of each and every member of staff and the communities around all our London developments from which many of our colleagues come. "
"We're determined to invest in our people and our communities in this way. Paying the London Living Wage encourages staff retention, reduces sickness days and demonstrates our commitment to being a good employer."
Tom Blomfield, CEO of accredited Living Wage digital bank, Monzo, said:
"To attract the best people and innovations to London, we need to work together to provide excellent working standards. That begins with paying all employees at least the Living Wage so that they can afford meet their living costs. London is the go-to place for technology, innovation, inclusivity and diversity, a reputation that can only be enhanced by paying all employees a fair day's pay for a hard day's work."