NUMBERS released by the Office of National Statistics shows that almost a third of workers in the South Hams are earning less than the Living Wage.
The Living Wage, as recommended by the Living Wage Foundation, is currently £7.85 an hour. This is calculated by the Foundation by the Centre for Research in Social Policy and the research looks in detail at what households need in order to have a ‘minimum acceptable standard of living’.
The report by the Office of National Statistics estimates proportions and numbers of employee jobs paid less than the living wage in London and other parts of the UK in 2014, when the Living Wage was £7.65 an hour. The Living Wage is updated every first week of November.
The report shows that in the South Hams, 9,000 employees earn less than the Living Wage, 30.1 per cent of the working population. A Living Wage salary in 2014 would have been £15,912 and in 2015, would be £16,328, based on a 40-hour working week.
The Living Wage Foundation say: ‘An independent study examining the business benefits of implementing a Living Wage policy in London found that more than 80 per cent of employers believe that the Living Wage had enhanced the quality of the work of their staff, while absenteeism had fallen by approximately 25 per cent.
‘Two thirds of employers reported a significant impact on recruitment and retention within their organisation. 70 per cent of employers felt that the Living Wage had increased consumer awareness of their organisation’s commitment to be an ethical employer.’
Employers choose to pay the Living Wage on a voluntary basis and it is separate to the ‘living wage’ announced by the Government at this year’s budget, which is essentially just a higher minimum wage.
The Living Wage Foundation bases their research on the cost of living, while the new minimum wage is based on median incomes, and doesn’t apply to workers under 25.





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