Living wage in the United Kingdom

The United Kingdom has a statutory minimum wage since 1998 but no statutory Living Wage. Some organisations voluntarily pay a Living Wage to their staff following campaigns in the 21st century.

Rates

The Living Wage Foundation (LWF) set Living Wage rates for 2015 as £9.15 for London and £7.85 for the rest of the UK.^[1] The London rate is calculated by the Greater London Authority and the nationwide rate calculated by the Centre for Research in Social Policy. Annual rates are announced in November each year during Living Wage Week.

Campaigns

Third sector

In the United Kingdom, many campaigning organisations have responded to the low level of the National Minimum Wage by asserting the need for it to be increased to a level more comparable to a Living Wage. For instance, the Mayor of London's office hosts a Living Wage Unit which monitors the level needed for a living wage in London (which has considerably higher living costs than the rest of the UK). Other organisations with an interest in Living Wage issues include Church Action on Poverty ^[2] and the Scottish Low Pay Unit.

Since 2011, the LWF has been the focus of these efforts, and has accredited "Living Wage Employers", based on the London calculations and an outside London figure calculated by the Centre for Research in Social Policy at Loughborough University, using its Minimum Income Standard.^[3]

Media

The Guardian newspaper columnist Polly Toynbee is also a major supporter of the campaign for a Living Wage. The activist group Bloomsbury Fightback! are campaigning for a Living Wage to be implemented across the University of London.^[4]

Political support

The Labour Party leader, Ed Miliband actively supports the Living Wage saying that the Living Wage 'can make Britain both a fairer and more prosperous place',^[5] also supporting tax breaks for employers who adopt the Living Wage.^[6] The Labour Party has implemented the Living Wage in some local councils which it controls, such as in Birmingham^[7] and Cardiff^[8] councils. Mayor of London Boris Johnson is also a keen supporter of the Living Wage, and has stated that "paying the London Living Wage ensures hard-working Londoners are helped to make ends meet."^[9] The Green Party also supports the introduction of a Living Wage, believing that the National Minimum Wage should be 60% of net national average earnings.^[10]

The Welsh Health Minister Mark Drakeford decided that from September 2014 NHS Wales staff would be paid at least the Living Wage, resulting in about 2,400 employees receiving an increase in salary of up to £470 above UK wide Agenda for Change rates.^[11]

Research

In 2014, new research was published in a number of reports on the potential impact of raising the UK's statutory National Minimum Wage to the same level as the Living Wage. This includes two Trust for London-funded reports ^[12] by the IPPR & Resolution Foundation; "Beyond the Bottom Line" ^[13] and "What price a living wage?".^[14] Additionally, Landman Economics have published "The Economic Impact of Extending the Living Wage to all Employees in the UK".^[15]

Trust for London have also funded research on the costs and benefits of a Living Wage in London, carried out by Queen Mary University of London.^[16]

Data published in late 2014 by New Policy Institute and Trust for London found 20% of employees in London were paid below the London Living Wage between 2011 and 2013. The proportion of residents paid less than this rate was highest in Newham (37%) and Brent (32%).^[17]

Organisations which pay the Living Wage

The Living Wage Foundation award the Living Wage Employer Mark to employers that pay the Living Wage to directly employed staff and put a plan in place for phased implementation of the Living Wage for contracted staff.

Over 1,300 employers have been awarded with the Living Wage Employer Mark. Some of the organisations awarded are listed below:

• Allen & Overy
• Aviva^[18]
• Barclays^[19]
• BrewDog^[20]
• Clifford Chance^[21]
• Heart of Midlothian FC
• F.C. United of Manchester^[22]
• Herbert Smith Freehills
• KPMG^[18]
• Linklaters^[18]
• Nestlé UK^[23]
• Oxfam
• Save the Children^[18]
• Slaughter and May
• Transport for London
• Yorkshire Water^[24]

References

External links

• Living Wage Foundation