Recently we have seen the launch of the living wage. We have read stories of employers offering all employees national living wage and not just over 25’s. We are inclined to think that the wage increase to get Britain working, support living costs of today and incentivise people to work for their wage is a positive, but we have taken time to reflect on how this may have affected your business…

We thought we would provide a quick glance at the facts behind the national living wage:

  • The living wage is based and calculated on the basic living costs in Britain today
  • The current UK living wage that is offered to all employees is £8.25 per hour
  • Interestingly, the London living wage is £9.40 per hour
  • 70% of employers felt that the living wage had increased consumer awareness of the organisation’s commitment to be an ethical employer
  • 75% of employers reported increases in work quality as a result of employees receiving the national living wage
  • 50% of employees felt that the living wage had made them more willing to implement changes in their working practises

For companies themselves, the benefits of being a ‘Living Wage Employer’ include official accreditation, appearing on searchable maps on the Living Wage website, use of the Living Wage logo on a website, headed paper, media pack etc., a plaque and certificate of membership. The administrative costs to signing up to the scheme are relatively negligible (but are obviously in addition to wage increases that would be paid). Many businesses will need to evaluate whether their clients will be willing to share the additional costs of an increased hourly rate.