Living Wage Week
Posted by Kate Green, MP for Stretford and Urmston, at 09:46, Fri 8 November 2013:
I've been back in parliament this week, though taking things slowly following my recent illness. Thanks to everyone who sent good wishes while I was sick.
I was glad to get back in time to chair an important event which took place in parliament as part of Living Wage week. On Tuesday, new rates were announced for the living wage: £7.65 per hour, £8.80 for those working in London. MPs from all parties attended a rally organised by the Living Wage Foundation to show their support.
I'm a longstanding supporter of the living wage. Unlike the national minimum wage, which sets a legal floor below which noone's pay should fall, the living wage has no statutory force. But an increasing number of employers are voluntarily choosing to pay it. They know it makes good business sense: more highly motivated staff and lower staff turnover bring productivity gains - and help strengthen the reputation of the employer, ensuring they are attractive to those seeking work.
There's good news for the taxpayer too. Higher wages mean people rely less on tax credits to top up low pay. It makes sense for governments to support the living wage. That's why Ed Miliband this week guaranteed that employers will be offered a reduction in their national insurance contributions if they offer living wage jobs.
But the best news is for low paid workers who get an immediate pay rise. At the rally in parliament, we heard some very moving stories about what a difference this could make. Yet there are still relatively few employers who are paying the living wage, and while it's clear not all can afford to do so, many more could.
MPs are particularly keen that the public sector should be a living wage employer. We're campaigning for every government department to pay the living wage - some already do but many do not.
We want parliament to be a living wage employer - and of course every MP.
And we want local government, the NHS, schools, nurseries, care homes and so on to be living wage employers too.
That doesn't just mean paying your own employees a living wage. If you're letting contracts to suppliers, as part of the contract, they should be required to pay a living wage too.
Some months ago, Labour councillors in Trafford called on our council to become a living wage employer. There were warm words from the ruling Tory group, but nothing has happened since. Of course, the council may say they can't afford It. But more than 20 Labour councils around the country are already living wage employers. Trafford needs to learn from them.
Paying the living wage may seem expensive. But in the long run, it ensures everyone - employees, employers and the taxpayer - ends up better off. I hope more employers in Trafford will become living wage employers. And I hope those businesses that have already done so will speak out about the benefits that being a living wage employer has brought to them.
Best wishes
Kate
0161 749 9120
kate.green.mp@parliament.uk
www.kategreen.org
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Posted by Mr Clive Gibson, 11:24, Fri 8 November 2013: (Is this post abusive?) #
Labour and in particular Gordon Brown encouraged employers to pay low wages by, as Kate admits, 'topping up' low pay through the benefits system. This is basically a subsidy to employers who can pay a wage on which workers can't actually afford to live safe in the knowledge that they will have it 'topped up'by the State. The 'living wage' is a similar scheme with this time a direct subsidy to employers. The real answer to low wages is a strong organised workforce who can force employers to pay a decent wage.