News: Living Wage Foundation responds to Low Pay Commission consultation
Read our response to the Low Pay Commission consultation on National Minimum Wage rates here
Today we responded to the Low Pay Commission's consultation on the Government’s minimum wage rates and the Taylor Review, calling on the Commission to encourage more employers to go beyond the government minimum to ensure their staff earn a real Living Wage based on what they need to get by.
The introduction of a higher minimum wage for over 25s led to a pay rise for millions of people and was a huge win for the campaign for a Living Wage. But there are still over 5.5m people paid less than the wage they need to live.
We are inviting the Low Pay Commission to work with us to grow the movement for a real Living Wage by:
- Clarifying that the government’s ‘national living wage’ is not calculated based on an assessment of what low paid employees need to make ends meet.
- Explaining the difference between the government’s minimum wages and the real Living Wage based on what full time workers need to make ends meet, by publishing on the Commission website information about:
a. The wage gap between the government minimum and the real Living Wage for over 25s and younger workers;
b. The fact that the real Living Wage applies to all workers over the age of 18 – in recognition that young people face the same living costs as everyone else;
c. The fact that the real Living Wage includes a separate London rate – to reflect the higher cost of living in the capital.
3. Signalling that employers that can afford to do so should consider going beyond the government minimum to pay a real Living Wage that is calculated based on what people need to meet the costs and pressures of their everyday lives, and signposting employers to the Living Wage Foundation for support and advice on how they can do this.
4. Becoming an accredited Living Wage employer, to signal their commitment to being a responsible employer as well as reflecting their mission to help as many low-paid workers as possible without any significant impact on employment or the economy.