The new data, calculated by the Smith Institute for the Living Wage Foundation, reveals that 1.2 million public sector workers earn below the real Living Wage (not to be confused with the National Minimum Wage/National Living Wage).
According to the Living Wage Foundation, as well as broad cross-party support from voters, polling conducted by Survation found that 64.3% of people agree that workers employed on public money through government contracts should be paid the real Living Wage. The real Living Wage rate, which is independently calculated based on the real cost of living, is currently £9 across the UK and £10.55 in London. The Foundation said that paying the real Living Wage isn’t just the right thing to do but it also makes financial sense. The data shows that if these public institutions uplifted all low paid workers to the real Living Wage, 35p in every £1 would be returned to the Treasury in the form of increased tax receipts.
The Local Government and Council and the Health Authority and NHS are shown to have the highest number of workers earning below the real Living Wage.
According to the Living Wage Foundation 75% of Living Wage employers have seen an increase in staff motivation and retention
The Living Wage Foundation offer accreditation to employers that pay the independently-calculated Living Wage rates to all staff in London and the UK, or those committed to an agreed timetable of implementation, by awarding the Living Wage Employer Mark.
They also offer a Service Provider Recognition Scheme for third party contractors who ensure their own staff are earning the real Living Wage rates and always offer a Living Wage option when submitting tenders.
Currently there are over 4900 Living Wage employers – the CIPP being one of them. Find out more here.
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Low Pay Commission consultation 2019 18 March 2019
The Low Pay Commission (LPC) has opened its annual consultation on the levels of the National Minimum Wage rates, including the National Living Wage.
The LPC is the independent body that advises the Government on the level of the minimum wage. It has been asked to recommend in October of this year the National Minimum Wage and National Living Wage rates to apply from April 2020.
The current target for the National Living Wage will be met (subject to sustained economic growth) by April 2020.
The LPC is also seeking views on how the existing target for the National Living Wage has worked and on potential future arrangements.
The LPC is particularly interested in: • Views on the affordability and effects of an increase to the ‘on target’ rate for April 2020 – currently around £8.63. • Evidence of the impact of increases in the NLW since its introduction – including the April 2019 uprating – on workers, employers, the labour market and the economy. • Evidence of how employers are seeking to improve productivity. • Evidence on how the economic outlook is affected by the process of leaving the European Union. For the other rates – affecting workers under 25 and apprentices – the LPC is seeking evidence to make recommendations on its traditional basis of ‘helping raise the pay for as many low-paid workers as possible without damaging their employment prospects’. In addition to this consultation the LPC has its annual programme of visits around the UK (published in February) which allows them to hear directly from workers and businesses as to how their minimum wage recommendations are working ‘on the ground’.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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