Business

Call To City Firms To Pay Real Living Wage

Issue 105

Newcastle has become a 'Real Living Wage City'. An ambitious plan has been unveiled which could result in thousands of workers getting a pay rise.

More than 100 companies attended an event at St James’ Park to find out about the benefits of paying the real living wage. This is an independly calculated rate of pay based on what employees and their families need to have a ”decent standard of living” which is higher than the national minimum wage.

Experts believe that this is an effective way of tackling child poverty which in Newcastle is over 40% with seven in 10 youngsters in poverty coming from working households proving that low pay is not enough to pay for life’s essentials. In 2023 Newcastle council, a real Living Wage employer, revealed its intention to make Newcastle a real Living Wage City with accreditation from the Living Wage Foundation.

With partners, it set up a task group to push forward the real Living Wage agenda and have set a three -year plan on how to achieve this. Employers, who don’t pay the real Living Wage, have been invited to find out how they can get involved.

According to the Living Wage Foundation, more than 14,000 employers across the UK pay the real Living Wage – of those 174 are in Newcastle.

Together they employ 50,000 staff and pay the RLW to 5,000 of their lowest paid aged over 18. The rate is £12 per hour.

The Council is a calling on all employers across the region to recognise and address the issues of low pay within their labourforce and aross their supply chains, and to register as real Living Wage employers if they can.

Accredited RLW employers across the city include WDL Construction, Newcastle University, Newcastle United FC, Newcastle Hospitals, Bellway Homes and many pubs and restaurants.

According to Coun Stephen Lambert, Vice Chair of the Economy, Skills and Jobs committee, it “makes good business sense”. Over 80% of accredited RLW employers claimed it had ”enhanced their reputation”. Over half said it had improved the quality of those applying to work for them.

Research finding show that the extra money people will have in their pockets is spent locally with businesses and shops, creating jobs and “economic resilience”. It’s estimated 23,000 employees earn below the RLW in Newcastle.

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