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Living wage should be adopted by central government, says Boris Johnson | Living wage should be adopted by central government, says Boris Johnson |
(about 17 hours later) | |
Boris Johnson has called on David Cameron to follow his lead by paying all staff across Whitehall the London living wage as he announced the new rate of £8.55 for workers in the capital, following a 25p increase. | Boris Johnson has called on David Cameron to follow his lead by paying all staff across Whitehall the London living wage as he announced the new rate of £8.55 for workers in the capital, following a 25p increase. |
The prime minister came under pressure as Johnson and the Labour leader, Ed Miliband, held separate events to press the case for employers to pay workers a living wage, well above the minimum rate for adults of £6.19, to ensure they can enjoy a decent standard of living. | |
The living wage rate outside London also rose on Monday by 25p to £7.45, benefiting thousands of workers. | |
Cameron's spokesman said the government supported the living wage, but claimed that making it a condition of giving government contracts to private businesses would breach EU rules. | |
But Miliband said: "I think it is completely ridiculous for the government to be hiding behind EU law to try and explain their total failure to promote the living wage in two-and-a-half years in office. They promised before the election that it is something that they took seriously – the prime minister made that promise – and nothing has happened. | |
"What local councils are showing is that there are definitely ways of promoting the living wage and getting contractors to pay the living wage, which are absolutely within EU law." | |
Jean Lambert, Green MEP for London, described the government's view of EU law as "completely wrong". | |
She said: "In response to my question on the inclusion of living wage conditions in procurement processes, the [European] commission clearly states that living wage conditions can be included in public sector contracts, provided they are not discriminatory. Now that the government is aware that there is no problem under EU law, they can make progress on ensuring payment of the living wage for low-paid workers on the government estate, helping to ensure that work pays." | |
Johnson said "some of the most red-blooded capitalist firms you can imagine" were signing up to the living wage because they realised it helped to create productivity and ensured staff enjoyed a decent standard of living. | |
Cameron hailed the living wage as a "good and attractive idea" before the general election in 2010 and vowed that as the biggest employer in the country the government would take the lead to ensure that "fairness will begin to be hardwired into pay scales up and down the country". But two years on, the LLW has yet to be systematically deployed across Whitehall. | |
Cameron's spokesman said: "We are not proposing to require it of businesses. Requiring people to pay it would reduce the flexibility businesses have and could ultimately be a bad thing for jobs." | |
Johnson urged the government to support low-paid workers in the capital. | |
"I would like to see Whitehall generally in London, I would like to see Labour councils, Tory councils, Liberal councils, supporting low-paid workers and pay the London living wage. A huge number of public sector workers could benefit from this." | |
Johnson unveiled a trademark that formally recognises and accredits employers who pay the London living wage, courtesy of the Living Wage Foundation, which hopes the mark will become as recognisable as the Fairtrade logo. | |
But it emerged that the Greater London Authority, led by Johnson, has yet to be added to the 76-strong list of accredited employers and that the five London borough councils included are all Labour-controlled. The GLA is on a separate list of 44 employers in the process of being accredited, which includes four more Labour-controlled London boroughs and Tower Hamlets, led by independent mayor Lutfur Rahman, with no Conservative-led council on either list. | |
Johnson, who has for the past four years championed the LLW, established in 2005 by his predecessor, Ken Livingstone, outlined the mutual benefits of paying a rate £2.36 above the minimum wage. | Johnson, who has for the past four years championed the LLW, established in 2005 by his predecessor, Ken Livingstone, outlined the mutual benefits of paying a rate £2.36 above the minimum wage. |
He said "some of the most redblooded capitalist firms you can imagine" were signing up to the LLW because they realised it helped to create productivity as well as ensuring staff can enjoy a decent standard of living. | |
Lovebridge Achempoang, a cleaner working for Lloyds of London, said receiving the LLW from his employer had made a big difference for him and his family. It had allowed him to spend more time with his three daughters, having previously worked very long hours to make ends meet, and coming home very late, feeling very tired. | |
"Because of the living wage I don't need to work so many hours and can now spend time with my family," he said. "We might only be in a one-bedroom flat, but it's ours to live in and I'm very happy to be there. It feels good to be able to support myself and my family." | |
Pressed on the fact that he is the only Conservative in the capital to show leadership by implementing the LLW rate to all GLA staff, Johnson said: "I've certainly heard David Cameron support this and give very clear and categorical backing for what we are doing, so that's good." | Pressed on the fact that he is the only Conservative in the capital to show leadership by implementing the LLW rate to all GLA staff, Johnson said: "I've certainly heard David Cameron support this and give very clear and categorical backing for what we are doing, so that's good." |
However, Johnson declined to be drawn on whether the government should lift the minimum wage to the living wage rates for inside and outside the capital. "I certainly think it's important to pay people decently but we've got particular issues here in London which means the London living wage for the capital." | However, Johnson declined to be drawn on whether the government should lift the minimum wage to the living wage rates for inside and outside the capital. "I certainly think it's important to pay people decently but we've got particular issues here in London which means the London living wage for the capital." |
Downing Street's claim that imposing the living wage as a condition of business would be in breach of EU procurement laws was challenged by Jean Lambert, Green MEP for London, as "completely wrong". | |
"In response to my question on the inclusion of living wage conditions in procurement processes, the [European] commission clearly states that living wage conditions can be included in public sector contracts, provided they are not discriminatory. Now that the government is aware that there is no problem under EU law, they can make progress on ensuring payment of the living wage for low-paid workers on the government estate, helping to ensure that work pays." | |
Miliband vowed to address Britain's "living standards crisis" by delivering a living wage of at least £7.20 an hour to millions of people in the public and private sector. He contrasted the 11 Labour councils that have already become living wage employers, with more on the way to acquiring living wage status, with the record of Conservative-led boroughs. | |
Miliband outlined three policy proposals that could be used to promote the living wage: forcing employers to pay the living wage if they want to bid for public sector contracts; paying firms a subsidy if they pay the living wage, and forcing companies to say how many of their employees are receiving less than the living wage, as part of a natural extension of the principle of pay transparency at the top. | |
"There are almost 5 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. "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. | |
"It's not how it should be in Britain. It's not how we will succeed as a country in the years ahead because we can't go on with an economy that works for a few at the top and not for most people. We need to change it." | "It's not how it should be in Britain. It's not how we will succeed as a country in the years ahead because we can't go on with an economy that works for a few at the top and not for most people. We need to change it." |
In London, an estimated 11,500 workers have benefited since the LLW was introduced in 2005. Johnson said the new rate of £8.55 will be worth £4.5m a year for lower-paid workers, and announced that InterContinental had become the first hotel chain to sign up to the living wage. | |
Johnson blamed the fact that the GLA was still in the process of securing accreditation on "historic" authority contracts that would see the LLW implemented once they were renewed. Aides to Johnson said the GLA was implementing the LLW "100%" for its staff but not yet for all external contractors, and that the paperwork for such a large organisation, encompassing five functional bodies, meant the accreditation process was taking longer. | |
Darren Johnson, a Green member of the London assembly, said: "The mayor's support for the living wage is very patchy. I had to lobby him earlier in the year to get the official Olympics hotel partner signed up, and even then he broke his election promise to only promote living-wage hotels to tourists. It has been the same story with councils and Whitehall, where I have repeatedly lobbied him to raise it when meeting council leaders and ministers. That list of living-wage employers could have been a lot longer if the mayor had spent five years making the case at every opportunity, not just for the occasional press release." | Darren Johnson, a Green member of the London assembly, said: "The mayor's support for the living wage is very patchy. I had to lobby him earlier in the year to get the official Olympics hotel partner signed up, and even then he broke his election promise to only promote living-wage hotels to tourists. It has been the same story with councils and Whitehall, where I have repeatedly lobbied him to raise it when meeting council leaders and ministers. That list of living-wage employers could have been a lot longer if the mayor had spent five years making the case at every opportunity, not just for the occasional press release." |
Rhys Moore, director of the Living Wage Foundation, said the movement was growing as more employers realised the benefits of paying the rate. "Like Fair Trade, it represents a new standard for responsible business. We hope to see the living wage mark and symbol spreading further and further across organisations in the UK." | |
More than 80 employers have been formally accredited to the foundation, with 47 awaiting accreditation and a further 73 saying they are committed to paying the rate. Around 200 employers in London support the campaign, ranging from banks to universities. | More than 80 employers have been formally accredited to the foundation, with 47 awaiting accreditation and a further 73 saying they are committed to paying the rate. Around 200 employers in London support the campaign, ranging from banks to universities. |