Business services chief hails Living Wage rise
A SENIOR partner at the Manchester office of business services giant KPMG has welcomed the 2%-plus rise in the new independently calculated Living Wage rates.
The hourly rate set by the Living Wage Foundation has increased from £8.25 to £8.45 and for workers in London it has risen 3% from £9.40 to £9.75.
Senior partner Jon Holt said although the rises seemed like “small change” it would make a huge difference to many people trying to escape “in-work poverty”.
“With the cost of living higher than it’s ever been, the reality for many is that they are forced to live hand to mouth. Paying a Living Wage will save huge swathes of people being caught between the desire to contribute to society and the inability to afford to do so,” he said.
“As employers we can take active steps to address this, by paying the voluntary Living Wage. This also delivers real and tangible business benefits. In our own firm it has improved staff morale and driven a rise in service standards, improved the retention of staff and increased our productivity.
“It may not be possible or practical for everyone, but all organisations need to do what they can to address the problem of low pay. Of course, change cannot happen instantly, but making an initial assessment is an important first step.”
Holt’s comments coincide with a report by KPMG which points out some 5.6 million people in the UK are paid less than the voluntary Living Wage, constituting 22% of all working people, according to new estimates published today by KPMG.
The proportion of employees earning less than the voluntary Living Wage has risen steadily from 19% in 2012, when this report began, to 22% in 2016, a 1.1 million increase.
The total number of people earning below the Living Wage today does not differ tremendously from figures published last year, however it is still considerably higher than four years ago.
The research, conducted by Markit for KPMG, reveals that part-time jobs are three times more likely to pay below £8.25 per hour (or £9.40 in London) than full-time roles.
Around 43% of part-time workers now earn less than the voluntary Living Wage, compared with around one-in-seven full-time workers (14%).
The difference is so stark that despite accounting for less than one-third of all UK jobs, there are more part-time roles paying less than the Living Wage (3.1 million) than full-time jobs (2.5 million).
Regionally, Northern Ireland has the highest proportion of people earning below the voluntary Living Wage at 27%, followed by the East Midlands at 26%. The lowest proportion is in London and the South East, both at 18 percent, followed by Scotland at 19%.
However, by number of people rather than proportion, London (722,000), the North West (643,000) and the South East (624,000) are the most affected areas.
Katherine Chapman, Living Wage Foundation director, said: “The report shows that there are still millions of people who don’t earn enough to make ends meet, and many who feel that their finances are getting worse not better.
“That’s why the need for employers to go further than the government minimum to ensure their employees earn a real Living Wage is as important as ever.”
