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Ed Miliband to unveil 'living wage' proposals Living wage: Ed Miliband pledge over government contracts
(about 1 hour later)
Ed Miliband will unveil plans to deliver a "living wage" of at least £7.45 per hour for millions of people, if Labour wins the next election. Ed Miliband has unveiled plans to deliver a "living wage" of at least £7.45 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. Whitehall contracts would only go to firms paying the living wage, while those who paid less could be "named and shamed", said the Labour leader.
href="http://www.livingwage.org.uk/" >It comes at the start of Living Wage Week, with events around the country. His speech came at the start of href="http://www.livingwage.org.uk/" >a week of events promoting the idea.
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 Scottish government says all staff will get the living wage. London's mayor said it made economic sense.
The "living wage", which is part of a campaign by the Living Wage Foundation and Citizens UK, is considerably higher than the existing minimum wage which is £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 - which is £7.45 per hour across the UK except for London where it is £8.55 per hour - does not have any legal force, but is part of a campaign by the Living Wage Foundation and Citizens UK.
On Monday it was announced that the Living Wage, which is calculated annually, had risen by 25p to £7.45 per hour for those workers across the UK, and to £8.55 per hour for workers in London. It is considerably higher than the official minimum wage that employers must legally pay, which stands at £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 and introducing rules forcing government contracts to only be given to those firms who pay it.
It also wants to introduce rules forcing government contracts to only be given to those firms who pay workers the living wage as a minimum. "Just as in the 1990s, the minimum wage was a signature achievement of the last Labour government.
href="http://www.independent.co.uk/news/people/profiles/ed-miliband-exclusive-wed-name-and-shame-lowpayers-8280627.html" >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. "So in the coming years, the living wage will be central to our work," Mr Miliband said.
"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 need to build an economy where everyone has a stake.
Repeating the One Nation theme he used 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." "Not where millions of people feel they never have a chance for a decent life however hard they work."
He added: "It is about giving people a proper stake in the future of the country." Employers who have voluntarily committed to pay the living wage are expected to start paying the new higher rate within six months of the announced rise.
'Stake in the future' The Scottish government, which has been paying directly employed staff the living wage since last year, has announced it will implement the rise from April 2013. This will benefit up to 3,300 workers, it said.
Employers paying the wage are expected to start paying the new higher rate as soon as possible, and within 6 months of the announced rise. Speaking at the launch of the increased London rate, Mayor of London Boris Johnson said paying the wage made "economic sense" for the city by giving employees more spending power.
The Scottish government, which has been paying directly employed staff the "living wage" since last year, has announced it will implement the rise from April 2013. This will benefit up to 3,300 workers, it said. 'Shairing fairly'
If everyone was paid the "living wage", 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. He said: "By building motivated, dedicated workforces, the living wage helps businesses to boost the bottom line and ensures that hard-working people who contribute to London's success can enjoy a decent standard of living."
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. If everyone was paid the living wage, 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.
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 unveiled 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 said: "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.
"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.
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."
Are you on the minimum wage? Are you an employer? What are your thoughts on the idea of a 'living wage'? Please fill in the form below if you are willing to be interviewed by the BBC.Are you on the minimum wage? Are you an employer? What are your thoughts on the idea of a 'living wage'? Please fill in the form below if you are willing to be interviewed by the BBC.