Today saw the Government announce the highest increase in Real Living Wage in history – a 10% increase to £10.90 an hour. But what is Salford doing to support its workers, but to what extend will the pay rise affect the community?
The past three years has seen Salford jump from 38 recognised Accredited Living Wage Employers, to 92 (a huge step from its estimated 76).
Regarded as England’s first Living Wage city three years ago, Salford has exceeded the targets set out for itself back in 2019.
An Accredited Living Wage Employer is an organisation which recognises their commitment to the Living Wage and demonstrates their responsibility over employees.
Chris Dabbs of Unlimited Potential said: “We really want to give the message out that: paying the living wage is just what you do in Salford”
“We’ve been trying to engage employers, particularly in sectors where pay tends to be lower, to become an Accredited Living Wage employer.”
The Real Living Wage announcement usually comes during National Living Wage Week (15-21st November), but due to the rising cost of living, the Government brought the guidance forward.
Under the Government’s new legislation, those working under Accredited Living Wage employers will see a 10% increase in pay between now and Spring.
With Greater Manchester named England’s Real Living Wage Region, it aims for all employers to be Real Living Wage Accredited by 2030.
But with thousands of businesses across Salford still not providing the Real Living Wage to its employers, the Cost of Living Crisis is set to hit these the hardest. Dabbs continued: “The impact for people on the minimum wage is quite concerning, considering the cost of energy, food, and transport.
“There is already work going on between the statuary agencies and the voluntary sector around how we can mitigate some of the impact of that.
“We need to make sure that people who might not have suffered financial challenges understand the system and are aware what help and support is available.”
Those working in social care, retail, hospitality and larger, iconic venues are, on average, paid below the Real Living Wage.
Whilst it’s also industries that employee more female or BAME workers that tend to pay less, Chris explained how its makes financial sense to pay the Real Living Wage. He said: “Evidence from a business point of view is the impact of the Real Living Wage is the opposite. It increases productivity, sickness, and staff turnover.
“Although you will pay more, in the long run, financially you’re better off as a business. The difficulty is often all that the employer thinks about is the wage bill. We have to make sure we get the message across that this increases productivity.”
“There’s still thousands of employers in our region not paying the Real Living Wage. The approach we’ve taken for Salford is to look at large employers and also the impact on supply chains. This can influence smaller employers and it starts to filter through the system.”
For more information on the Real Living Wage in Salford, visit Social Value.
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