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Ed Miliband to unveil 'living wage' proposals Ed Miliband to unveil 'living wage' proposals
(about 4 hours later)
Ed Miliband will unveil plans to deliver a "living wage" of at least £7.20 per hour for millions of people, if Labour wins the next election.Ed Miliband will unveil plans to deliver a "living wage" of at least £7.20 per hour for millions of people, if Labour wins the next election.
The Labour leader will announce the living wage as a key plank of his "One Nation" vision for Britain.The Labour leader will announce the living wage as a key plank of his "One Nation" vision for Britain.
It comes at the start of Living Wage Week, with events around the country.It comes at the start of Living Wage Week, with events around the country.
On Sunday, work and pensions secretary Iain Duncan Smith said planned benefit changes would make it easier to ensure firms pay staff a "living wage".On Sunday, work and pensions secretary Iain Duncan Smith said planned benefit changes would make it easier to ensure firms pay staff a "living wage".
The "living wage" would be considerably higher than the existing minimum wage - £6.19 per hour for those over 21, £4.98 for those over 18, and £3.68 for 16- and 17-year-olds.The "living wage" would be considerably higher than the existing minimum wage - £6.19 per hour for those over 21, £4.98 for those over 18, and £3.68 for 16- and 17-year-olds.
As part of its policy review Labour is looking at ways of making the living wage the new norm, including naming and shaming companies who do not pay the wage.As part of its policy review Labour is looking at ways of making the living wage the new norm, including naming and shaming companies who do not pay the wage.
It also wants to introduce rules forcing government contracts to be given to only those firms who pay workers the living wage as a minimum.It also wants to introduce rules forcing government contracts to be given to only those firms who pay workers the living wage as a minimum.
Mr Miliband told the Independent on Sunday: "You go out, slog your guts out... you deserve a decent wage if the company can afford it.Mr Miliband told the Independent on Sunday: "You go out, slog your guts out... you deserve a decent wage if the company can afford it.
"We've got a growth crisis in Britain, but we've also got a living standards crisis because the proceeds of economic growth are not being fairly distributed any more.""We've got a growth crisis in Britain, but we've also got a living standards crisis because the proceeds of economic growth are not being fairly distributed any more."
The "living wage" would be £8.30 an hour in London, where the cost of living is higher than the rest of the UK.The "living wage" would be £8.30 an hour in London, where the cost of living is higher than the rest of the UK.
Referring to the concept he coined - cribbed from Benjamin Disraeli's 1872 speech - at last month's Labour conference, he said: "This is the next step for One Nation, because One Nation is about everybody having a stake in society. It is about prosperity being fairly shared."Referring to the concept he coined - cribbed from Benjamin Disraeli's 1872 speech - at last month's Labour conference, he said: "This is the next step for One Nation, because One Nation is about everybody having a stake in society. It is about prosperity being fairly shared."
'Stake in the future''Stake in the future'
He added: "It is about giving people a proper stake in the future of the country."He added: "It is about giving people a proper stake in the future of the country."
The Institute for Fiscal Studies estimates the treasury would save £1,000 a year for every person from less spending on tax credits and from increased tax revenue.The Institute for Fiscal Studies estimates the treasury would save £1,000 a year for every person from less spending on tax credits and from increased tax revenue.
Barclays is one of a number of major companies already paying the "living wage" while 19 local authorities have been accredited as "living wage employers", including Newcastle City Council.Barclays is one of a number of major companies already paying the "living wage" while 19 local authorities have been accredited as "living wage employers", including Newcastle City Council.
One of those benefiting is cleaner Marlene Brownlee, who has worked at Newcastle's civic centre for 15 years and estimates she will be about £70 a week better off.One of those benefiting is cleaner Marlene Brownlee, who has worked at Newcastle's civic centre for 15 years and estimates she will be about £70 a week better off.
She said: "It'll make a big difference... that little bit extra - well I'm saying little, it's a lot really - is excellent, for me and everybody else at the council."She said: "It'll make a big difference... that little bit extra - well I'm saying little, it's a lot really - is excellent, for me and everybody else at the council."
Mr Miliband will be unveiling the new policy at Islington Council in London, which recently became another "living wage" employer.Mr Miliband will be unveiling the new policy at Islington Council in London, which recently became another "living wage" employer.
He is expected to say: "There are almost five million people in Britain who aren't earning the living wage; people who got up early this morning, spent hours getting to work - who are putting in all the effort they can - but who often don't get paid enough to look after their families, to heat their homes, feed their kids, care for elderly relatives and plan for the future.He is expected to say: "There are almost five million people in Britain who aren't earning the living wage; people who got up early this morning, spent hours getting to work - who are putting in all the effort they can - but who often don't get paid enough to look after their families, to heat their homes, feed their kids, care for elderly relatives and plan for the future.
"Too many people in Britain are doing the right thing and doing their bit, helping to build the prosperity on which our country depends, but aren't sharing fairly in the rewards.""Too many people in Britain are doing the right thing and doing their bit, helping to build the prosperity on which our country depends, but aren't sharing fairly in the rewards."
In a report last week by the Resolution Foundation think tank, chief executive Gavin Kelly said: "One in five British workers are low paid and it's a major reason why so many lower-income families feel as if they're running uphill - working hard but getting almost nowhere.In a report last week by the Resolution Foundation think tank, chief executive Gavin Kelly said: "One in five British workers are low paid and it's a major reason why so many lower-income families feel as if they're running uphill - working hard but getting almost nowhere.
"The high price of low pay is also borne by the taxpayer through in-work subsidies - so we all have reason to do something about it."The high price of low pay is also borne by the taxpayer through in-work subsidies - so we all have reason to do something about it.
"Requiring listed companies to report how many of their employees receive less than the living wage would introduce the power of transparency to this debate; it would be a vital step and help galvanise change," he added."Requiring listed companies to report how many of their employees receive less than the living wage would introduce the power of transparency to this debate; it would be a vital step and help galvanise change," he added.
Mr Miliband's brother David, the former foreign secretary, has given his backing to the campaign.Mr Miliband's brother David, the former foreign secretary, has given his backing to the campaign.
He wrote in The Observer: "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."He wrote in The Observer: "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."
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