Lambeth is working to be a borough where everyone gets paid at least the London Living Wage for every hour they work. London Living Wage is currently £11.95 per hour, with a new, higher rate announced on 24 October.
On 17 October Lambeth launched its bid to become a Living Wage Place with guests from the Living Wage Foundation and a panel of accredited Living Wage Employers from the charity, arts, construction and hospitality sectors.
Equalities
Living Wage Foundation South-East Programme Manager Elise Craig, said: “One in six UK workers is still paid below Living Wage and it’s an equalities issue – both gender, with one in five women below living wage; and race, with 19% of non-white workers facing in-work poverty compared with 16% of white workers.”
“In Lambeth, Living Wage has meant an average wage uplift of over £1,000 each for 5,500 workers and put over £3 million back into the local economy.”
Making a difference
The benefits to employers paying Living Wage are self-evident – 86% of employers report improved reputation; 75% better staff motivation; 64% find improved market differentiation; and 58% believe it contributes to better staff and management relationships.
- “Paying Living Wage allows us to hold on to people with the passion for our cause. It’s central to our mission of getting people out of in-work poverty.” – IRMO
- “Living Wage really motivates staff retention, so you can build a customer-facing team.” – Brixton Blend
Action plan
To become a Living Wage place, Lambeth Council is in the process of putting together a local action group group – with anchor employers like hospitals and universities, third sector champions and businesses in different commercial sectors joining the council to champion Living Wage as well as paying it.
Living Wage Grant
Lambeth will offer all newly accredited Living Wage Employers a three-year Living Wage Business Grant to cover their accreditation fees and assist them with staying accredited.
More information
- See the one-minute video on making Lambeth a Living Wage Place
- For more on Lambeth Council support for local employers
- The Living Wage represents living with dignity on your earnings. The rate is calculated by an independent Living Wage Commission, advised by a focus group of different households. It’s based on a ‘basket’ of goods and services those households define as necessary – not just food but essentials like school uniform and a birthday cake. In London, rent makes up a higher percentage of the basket. See more at the Living Wage Foundation information pages