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A living wage is in everyone's interests A living wage is in everyone's interests
(35 minutes later)
Tomorrow, a new living wage rate will be announced. That is the hourly rate of pay that allows workers to earn enough to provide them and their families with the basics of a decent life. At its heart is an ethical argument for preventing in-work poverty and ensuring workers are not exploited through low wages. It's currently £8.30 for those in London and £7.20 for the rest of the UK. On Monday, a new living wage rate will be announced. That is the hourly rate of pay that allows workers to earn enough to provide them and their families with the basics of a decent life. At its heart is an ethical argument for preventing in-work poverty and ensuring workers are not exploited through low wages. It's currently £8.30 for those in London and £7.20 for the rest of the UK.
Our living wage campaign involving unions, students and voluntary organisations is sometimes quietly, sometimes noisily, changing lives. A growing number of companies and public-sector employers are leading the way in signing up to the living wage. And the Labour party is on board, from the leadership team to the grassroots.Our living wage campaign involving unions, students and voluntary organisations is sometimes quietly, sometimes noisily, changing lives. A growing number of companies and public-sector employers are leading the way in signing up to the living wage. And the Labour party is on board, from the leadership team to the grassroots.
But progress depends on keeping up the pressure and keeping up the campaigning. And it means finding incentives to persuade reluctant employers that it's in their interests as well.But progress depends on keeping up the pressure and keeping up the campaigning. And it means finding incentives to persuade reluctant employers that it's in their interests as well.
The minimum wage has been a great success, lifting more than a million out of poverty without job losses. The living wage campaign builds on that success in an attempt to stamp out in-work poverty.The minimum wage has been a great success, lifting more than a million out of poverty without job losses. The living wage campaign builds on that success in an attempt to stamp out in-work poverty.
Recent reports have highlighted the growing gap between rich and poor, including an important warning from the Resolution Foundation that by 2020 families will be no better off than they were in 2000. This problem needs to be mended if we are to make progress as a nation – fair pay for a fair day's work has to be part of that deal.Recent reports have highlighted the growing gap between rich and poor, including an important warning from the Resolution Foundation that by 2020 families will be no better off than they were in 2000. This problem needs to be mended if we are to make progress as a nation – fair pay for a fair day's work has to be part of that deal.
It's not as if pain is being equally shared. Pay and bonuses for many of the UK FTSE 350 company directors are rising to levels that the majority of workers could only dream of. Last year, rewards for those directors leapt by 49% – a world away from the average UK salary of £21,330.It's not as if pain is being equally shared. Pay and bonuses for many of the UK FTSE 350 company directors are rising to levels that the majority of workers could only dream of. Last year, rewards for those directors leapt by 49% – a world away from the average UK salary of £21,330.
Public tendering is one area where this could work, particularly with growing privatisation. For example, could government reward local authorities that get employers to sign up to the living wage, with some of the savings from tax credits to go into a local skills fund, controlled by those authorities?Public tendering is one area where this could work, particularly with growing privatisation. For example, could government reward local authorities that get employers to sign up to the living wage, with some of the savings from tax credits to go into a local skills fund, controlled by those authorities?
Given the growing number of employers who use the living wage as a benchmark, we believe it is time for the Low Pay Commission's remit to be amended to make it responsible for official living wage figures in addition to the national minimum wage.Given the growing number of employers who use the living wage as a benchmark, we believe it is time for the Low Pay Commission's remit to be amended to make it responsible for official living wage figures in addition to the national minimum wage.
There are clear and proven benefits to local communities and businesses too – people have more money to spend and they spend it locally. Big companies such as KPMG and many public-sector employers, such as the GLA, where the mayor, Boris Johnson, has carried on the work of Ken Livingstone, the devolved administrations and many large local government and civil service employers are paying the living wage.There are clear and proven benefits to local communities and businesses too – people have more money to spend and they spend it locally. Big companies such as KPMG and many public-sector employers, such as the GLA, where the mayor, Boris Johnson, has carried on the work of Ken Livingstone, the devolved administrations and many large local government and civil service employers are paying the living wage.
Our joint campaigning with Labour Students and the NUS began at FE colleges and made a difference to cleaners, nursery nurses and kitchen assistants. Unison negotiated with the Association of Colleges to introduce a living wage, but a minority of colleges signed up to it. We wrote to principals urging them to sign up and 59% have now done so. Movement for Change is working around the country on campuses and in communities showing how local power can make a real change to people's lives. We believe the tipping point has been reached.Our joint campaigning with Labour Students and the NUS began at FE colleges and made a difference to cleaners, nursery nurses and kitchen assistants. Unison negotiated with the Association of Colleges to introduce a living wage, but a minority of colleges signed up to it. We wrote to principals urging them to sign up and 59% have now done so. Movement for Change is working around the country on campuses and in communities showing how local power can make a real change to people's lives. We believe the tipping point has been reached.
Universities and colleges, like other public authorities, are under financial pressure, but the evidence shows that paying the living wage cuts absenteeism and labour turnover and raises productivity. We believe that the public sector should be exemplar employers. So we will continue our campaigning in colleges, and universities where there are handsome salaries paid to vice-chancellors, and living wage campaigns that deserve victory. We have already achieved success at Kent and Manchester universities.Universities and colleges, like other public authorities, are under financial pressure, but the evidence shows that paying the living wage cuts absenteeism and labour turnover and raises productivity. We believe that the public sector should be exemplar employers. So we will continue our campaigning in colleges, and universities where there are handsome salaries paid to vice-chancellors, and living wage campaigns that deserve victory. We have already achieved success at Kent and Manchester universities.
In the NHS, the lowest pay point on Agenda for Change national pay scales is £7.24 (just 4p above the current rate). But in local government, nearly a quarter of the workforce – more than 200,000 people – earn less than the living wage.In the NHS, the lowest pay point on Agenda for Change national pay scales is £7.24 (just 4p above the current rate). But in local government, nearly a quarter of the workforce – more than 200,000 people – earn less than the living wage.
Poverty pay has no place in the 21st century. Modern employers understand that; we just need to bring the rest with us.Poverty pay has no place in the 21st century. Modern employers understand that; we just need to bring the rest with us.
David Miliband is MP for South Shields; Dave Prentis is the general secretary of UnisonDavid Miliband is MP for South Shields; Dave Prentis is the general secretary of Unison