“A Hard Day’s Work should Amount to a Fair Day’s Pay”
In 2001 families banded together to establish a campaign to be paid a real Living Wage. Since then hundreds and thousands of families in the UK have benefited and been able to earn a wage they can sufficiently live on.
But the job here isn’t finished, and the plight continues. In fact, did you know that 20.3% of all workers in the UK still don’t earn a real Living Wage?
By definition, a “living wage” is defined as the minimum income necessary for an employee or worker to adequately meet their needs. In this partner blog, we talk about our allyship with the Living Wage Foundation, it’s impact, and how joining the campaign achieves a tangible difference in people’s lives.
What is the Living Wage Foundation?
Established in 2011, the Living Wage foundation is an independent movement of businesses and organisations across the UK. The campaign stands for the notion that a hard day’s work equals a fair day’s pay. Members of the Living Wage Foundation recognise and celebrate responsible leadership from an array of employers across multiple industries. The Living Wage is applicable to all directly employed staff over the age of 18 regardless of the amount of hours they work.
Poor working conditions are the sad reality for millions of workers in the UK. Organisations like the Living Wage Foundation ensure workers all over the country are earning fair wages, and not just the government minimum.
There are so many workers currently struggling to get the hours they need to make ends meet. In conjunction to the Living Wage campaign, the Living Wage Foundation have also started the “Living Hours” initiative to petition for a fair allocation of work hours alongside fair wages.
Living Wage Week 2020
Who does the Living Wage Apply to?
The Living Wage applies to all employees over the age of 18 regardless of the amount of hours they work.
For third party contractors, an exact definition is “those who work regularly, for 2 or more hours a week, for 8 or more consecutive weeks a year.” Part of joining the campaign means that organisations communicate the Living Wage commitment to everyone. Institutions are strongly encouraged to consider joining the movement, and then implementing paying the Living Wage to staff in their organisations.
What is the current Living Wage in the UK?
The Living Wage in the UK is currently at £9.50. The Living Wage is the only wage rate that is voluntarily paid by over 7,000 businesses who believe their staff have a right to a wage which meets everyday needs––like a weekly grocery shop, or a surprise trip to the vet. In London, because city-living is more expensive, the living wage has just been increased to £10.85.
Employers subscribing to the Living Wage Foundation should implement the rise as soon as possible and within 6 months. All staff should receive the new rate by 9th May 2021.
London Living Wage in rises to £10.55 an hour in 2018
What is the impact of the Living Wage movement?
Over 7,000 businesses have joined the campaign which means that over 250,000 employees have received a pay rise because of the Living Wage campaign. There are currently a wide range of employers accredited with the Living Wage Foundation including 2/5 of the FTSE 100 and popular names including Oxfam, Brewdog, and Burberry. Just to name a few.
- Fair wages are better for business
93% of UK businesses have reported benefitting from implementing the living wage within their organisations since achieving accreditation. Joining the Living Wage movement is better for business because it allows for greater retention of employees. When employees feel empowered and energised, they want to stay with a company. In fact, 70% of respondents in a survey said they were more likely to stay with their employer if they were paid the Living Wage.
- Fair wages are better for society
Financial insecurity is a fact of life for many employees paid less than the Living Wage. Research highlighted by KPMG previously discovered higher demand for unsecured credit among people earning less than the Living Wage than among those earning above the rate.
Fairer wages lead to a happier and more fulfilled workforce and society. According to the Living Wage Foundation’s report, 68% of respondents stated that being paid the national Living Wage would improve their happiness. According to an interview by the Foundation with a cleaner now being paid the Living Wage,
“being paid the Living Wage means I am not so tired, and now I am able to give up some extra part time work to live a healthier life.”
Become a Living Wage Employer
Our role as a Living Wage Employer
We officially became Living Wage employers in June 2020. As part of the campaign, we have pledged to pay all employees and staff members fairly for the work they do. We also make sure all our employees in London receive the London Living Wage, which currently is £10.85.
From our compassion team to our tech developers, we ensure that all Neo staff are paid a fair wage. We value them and the effort they put into their work––all to give our customers the best service they can.
To stay updated with the social impact organisations and about our involvement with the Living Wage Foundation, read more about it on our page, here.