A KPMG-commissioned study has found that almost five million of
staff throughout the UK and Northern Ireland are paid less than the recommended
living wage level. It currently stands at £7.20, although those working in
London see a £8.30 level due to increased living costs.
The living wage level is a calculation on how much per hour a
worker should be paid in order to provide a decent standard of living for them.
This includes the ability to pay rent, bills and necessities. The living wage is a voluntary rate of pay
above the mandatory minimum wage level of £6.19 for those over 21.
Calls for the minimum wage to be hiked up to the living wage level
have been condemned by the government and economists. It is widely believed
that increasing the cost of hiring new employees could seriously hurt
employment levels. As the BBC’s economic editor Stephanie Flanders says, “They
want an increase in wages for people at the lower end of the pay spectrum that doesn’t
cost anyone any money”.
The TUC (Trade Union Congress) have lambasted the findings.
Frances O’Grady, incoming TUC leader, said "It
is shocking that in this day and age one in five workers is still earning less
than is needed to maintain a decent standard of living. The living wage is not
a luxury and means that low-paid workers don't have to make tough choices over
whether they can afford the everyday things that most of us take for granted,
such as their fuel bill or a winter coat for their children.
"Paying a living wage makes a huge
difference to the individuals and their families and yet does not actually cost
an employer much more.”
Bar staff are the worst affected it seems, with
90% receiving less than the living wage. The same can be said for waiters and
waitresses, 85% of whom fail to receive the living wage. Sales and retail
assistants are also having trouble, more than 780,000 of them are paid less
than the recommended level.
On top of these facts, during the KPMG study
(KPMG has in fact rolled out the living wage to all of its lowest paid
employees) it seems that almost half of people polled that earn less than the
living wage expect their finances to be in a worse condition in 12 months time
and nearly a quarter feel their job security has gotten worse.
All three main party leaders had supported the
Living Wage campaign before the 2010 election, but none of them committed to
implementing it.
London Mayor Boris Johnson has recently begun to
pay all of his staff within London the recommended living wage, with plans to
implement it throughout the country over time. Lush boss Mark Constantine has
also agreed to the living wage recommendations within his stores and has seen a
large boost in morale and effectiveness.
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