The living wage has increased by 20p an hour to £7.85, boosting the pay of 35,000 low-paid workers in the UK.
The new rate for the voluntary pay threshold was announced at the start of living wage week along with figures showing that more than a fifth of UK workers still earn less than the living wage.
The Living Wage Foundation said the threshold was up 2.6% on 2013 and was 21% higher than the national minimum wage of £6.50 an hour. The London living wage goes up 4% to £9.15 an hour. Both voluntary rates are calculated to provide a basic but decent standard of living.
There has been a big rise in companies signing up and now more than 1,000 employers are accredited by the scheme. But low pay remains prevalent in Britain, campaigners warn, with bar staff and shop assistants among the most likely to live “hand to mouth”.
Rhys Moore, director of the Living Wage Foundation, said: “As the recovery continues it’s vital that the proceeds of growth are properly shared.
It’s not enough to simply hope for the best. It will take concerted action by employers, government and civil society to raise the wages of the five million workers who earn less than the living wage.
“The good news is that the number of accredited living wage employers has more than doubled this year.” A report on Monday from the consultancy firm KPMG, a supporter of the foundation, finds that younger workers, women and part-timers are more likely to be paid less than the living wage.The proportion of employees on less than the living wage is 22%, up from 21% last year, says the study.
In real terms, that is a rise of 147,000 people to 5.28 million. Responding to the report, Alan Milburn, the government’s social mobility tsar, said both employers and the government must do more to make Britain a living wage country.
“This research is further proof that more workers are getting stuck in low paid work with little opportunity for progression,” said the former Labour cabinet minister.
“It is welcome that the number of accredited living wage firms has increased. But far more needs to be done to help millions of people move from low pay to living pay.”
The research, conducted by Markit for KPMG, shows 43% of part-time workers earn less than the living wage, compared with 13% of full-time employees. It found 72% of 18- to 21-year-olds were earning less than the living wage, compared with just 15% of those aged 30-39. One in four women earn less than the benchmark, compared with 16% of men.
“Far too many UK employees are stuck in the spiral of low pay,” said Mike Kelly, head of living wage at KPMG. “With the cost of living still high, the squeeze on household finances remains acute, meaning that the reality for many is that they are forced to live hand to mouth,” added Kelly, who is also chair of the Living Wage Foundation.
The living wage campaign was launched in 2001 by Citizens UK, an alliance of community groups. Growth in accredited living wage employers averaged 10 a year in the first decade of the campaign.
This accelerated to about 300 in 2013 and more than 500 in 2014, according to a separate report published on Monday by Citizens UK and Trust for London, the biggest funder of the living wage campaign.
The campaign has been boosted by some big employers signing up in recent months, including food conglomerate Nestle and the bank HSBC.
Some types of business remain stubbornly resistant to the living wage, says the report, which was compiled with independent research by Cambridge Policy Consultants. Sectors where low wages are a fundamental part of the business model, in particular retail and the social care sector, were seen as most challenging.
Some companies have highlighted the business case for paying the living wage, including lower staff turnover and higher productivity. But the Federation of Small Businesses (FSB) said the rate must remain an “aspirational goal” and not become compulsory.
The FSB national chairman, John Allan, said: “More than half (53%) of small businesses already pay the living wage or above, are recognising the benefits to their business in terms of staff morale, performance and recruitment, but it should remain a voluntary goal.
“A mandatory living wage would pose considerable risks to small businesses in certain sectors, especially retail and health and social care. We want government to reduce other business costs, which would enable small firms to pass on the savings to their staff in the form of higher wages.”
theguardian.com
The new rate for the voluntary pay threshold was announced at the start of living wage week along with figures showing that more than a fifth of UK workers still earn less than the living wage.
The Living Wage Foundation said the threshold was up 2.6% on 2013 and was 21% higher than the national minimum wage of £6.50 an hour. The London living wage goes up 4% to £9.15 an hour. Both voluntary rates are calculated to provide a basic but decent standard of living.
There has been a big rise in companies signing up and now more than 1,000 employers are accredited by the scheme. But low pay remains prevalent in Britain, campaigners warn, with bar staff and shop assistants among the most likely to live “hand to mouth”.
Rhys Moore, director of the Living Wage Foundation, said: “As the recovery continues it’s vital that the proceeds of growth are properly shared.
It’s not enough to simply hope for the best. It will take concerted action by employers, government and civil society to raise the wages of the five million workers who earn less than the living wage.
“The good news is that the number of accredited living wage employers has more than doubled this year.” A report on Monday from the consultancy firm KPMG, a supporter of the foundation, finds that younger workers, women and part-timers are more likely to be paid less than the living wage.The proportion of employees on less than the living wage is 22%, up from 21% last year, says the study.
In real terms, that is a rise of 147,000 people to 5.28 million. Responding to the report, Alan Milburn, the government’s social mobility tsar, said both employers and the government must do more to make Britain a living wage country.
“This research is further proof that more workers are getting stuck in low paid work with little opportunity for progression,” said the former Labour cabinet minister.
“It is welcome that the number of accredited living wage firms has increased. But far more needs to be done to help millions of people move from low pay to living pay.”
The research, conducted by Markit for KPMG, shows 43% of part-time workers earn less than the living wage, compared with 13% of full-time employees. It found 72% of 18- to 21-year-olds were earning less than the living wage, compared with just 15% of those aged 30-39. One in four women earn less than the benchmark, compared with 16% of men.
“Far too many UK employees are stuck in the spiral of low pay,” said Mike Kelly, head of living wage at KPMG. “With the cost of living still high, the squeeze on household finances remains acute, meaning that the reality for many is that they are forced to live hand to mouth,” added Kelly, who is also chair of the Living Wage Foundation.
The living wage campaign was launched in 2001 by Citizens UK, an alliance of community groups. Growth in accredited living wage employers averaged 10 a year in the first decade of the campaign.
This accelerated to about 300 in 2013 and more than 500 in 2014, according to a separate report published on Monday by Citizens UK and Trust for London, the biggest funder of the living wage campaign.
The campaign has been boosted by some big employers signing up in recent months, including food conglomerate Nestle and the bank HSBC.
Some types of business remain stubbornly resistant to the living wage, says the report, which was compiled with independent research by Cambridge Policy Consultants. Sectors where low wages are a fundamental part of the business model, in particular retail and the social care sector, were seen as most challenging.
Some companies have highlighted the business case for paying the living wage, including lower staff turnover and higher productivity. But the Federation of Small Businesses (FSB) said the rate must remain an “aspirational goal” and not become compulsory.
The FSB national chairman, John Allan, said: “More than half (53%) of small businesses already pay the living wage or above, are recognising the benefits to their business in terms of staff morale, performance and recruitment, but it should remain a voluntary goal.
“A mandatory living wage would pose considerable risks to small businesses in certain sectors, especially retail and health and social care. We want government to reduce other business costs, which would enable small firms to pass on the savings to their staff in the form of higher wages.”
theguardian.com
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