Policy News Journal - 2015-16

Enhanced productivity, reduced absenteeism and better staff morale are just some of the benefits highlighted from new independent research of the Living Wage which coincides with the Scottish Government receiving accreditation . A recent Living Wage summit in Edinburgh hosted by the Scottish First Minister gathered key business leaders to look at how better paid staff can improve business productivity and ultimately drive forward the economy. The summit follows new independent research that highlighted a number of benefits of the Living Wage to both staff and employers and comes on the same day that the Scottish Government had its own accreditation confirmed. “The Scottish Government is committed to fairness and supporting those on the lowest incomes, and we recognise the real difference the Living Wage can make to the people of Scotland. Research published just last week highlighted enhanced productivity, reduced absenteeism and better staff morale as just some of its potential benefits. We have been working closely with the Poverty Alliance to encourage employers across Scotland to pay the Living Wage and to seek formal accreditation for doing so. There are now over 200 Scots-based employers who proudly display the Living Wage Accreditation Marque. The Scottish Government has been paying all of its staff above the level of the Living Wage for some time but now we are happy to say that we are amongst the number of officially accredited employers – a step which further demonstrates our commitment to payment of the Living Wage in Scotland. The First Minister said :

However, more needs to be done. We are committed to having 500 Scots-based Living Wage accredited employers by March 2016, a decisive long-term commitment to those on the lowest pay."

Living Wage rate There are now almost 1,500 accredited Living Wage employers across the UK and over 200 in Scotland.

The UK Living Wage rate is £7.85 per hour, an increase of 2.6% on the 2013 rate and 21% higher than the national minimum wage of £6.50 per hour. The London Living Wage rate is £9.15.

Find out more from The Living Wage Foundation .

National Minimum Wage - report on the 2015 apprentice rate 24 June 2015

The Government has published a policy paper on their rational for rejecting the Low Pay Commission’s recommendation on the National Minimum Wage rate for apprentices from October 2015.

In February 2015, the Low Pay Commission (LPC) recommended National Minimum Wage (NMW) rates to come into force from 1 October 2015. Following this the Government proposed to depart from the LPC’s recommendation to increase the Apprentice rate by 7p (2.6 %) from £2.73 to £2.80, in favour of increasing the rate by 57 pence to £3.30, the largest ever increase (21%) in the NMW for apprentices. The Department for Business, Innovation & Skills has published a report which sets out the evidence and impact of the Government’s decision not to accept the LPC’s recommendation and to increase the Apprentice rate to £3.30. In line with the National Minimum Wage Act, government is required to lay a report in Parliament outlining why an LPC recommendation has been rejected. Draft NMW regulations will be laid in Parliament to bring these changes into law. Regulations will be debated before coming into force on 1 October 2015. A full impact assessment will be published alongside the draft regulations.

National Minimum Wage rates from 1 October 2015:

CIPP Policy News Journal

25/04/2016, Page 237 of 453

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