Three outer London boroughs rank in the top five for the highest proportion of jobs paid under the living wage, according to a report by the Real Living Wage foundation which analysed ONS figures.
Nearly a third of jobs in Bexley, 28.5%, are paid under the real Living Wage (RLW) which ranks the borough the fourth worst in the UK for low wages.
Haringey secured the top spot with over a third of jobs paid under the living wage at 32.7%, closely followed by Brent, 29.5% and Waltham Forest at 28.8%.
Citizens UK leader Revd Dr Simon Woodman said: “It is a matter of shame that London, one of the world’s greatest cities, has the top five local authorities in the uk with the highest proportion of low paid jobs: nearly a third of people in these areas are living on the edge of poverty.”
The real Living Wage is a metric that takes the cost of living into account and has just risen to £13.15 in London and £12.
It is based on an evolving basket of goods and services, drawn from the public perception of what an acceptable standard of living is.
Thomas Standen of Apex Lifts, an accredited RLW Bexley based employer, was shocked at the figures.
He said: “Despite the higher cost of living, businesses are less likely to pay higher wages which you often get further in the city.”
The foundation’s report supports this theory, finding that wages in outer London don’t reflect the higher cost of living found across the city.
The legal minimum wage for over 23’s, which is confusingly called the national living wage, makes no differentiation for London and is significantly lower at £11.44 despite being increased in April.
According to the foundation’s research in August 2023:
- 39% of those earning less than the real Living Wage regularly skip meals
- 60% had used a foodbank
- 32% can’t heat their homes
- 27% have fallen behind on their rent or mortgage payments
- 52% felt it had negatively impacted their mental health
Kristiyan Peev of Citizens UK Nottingham spoke from personal experience: “Poverty is characterised by the inability to participate in the social and cultural life of society.
“Everyone should be able to live, not just survive.”
The RLW is a voluntary scheme however it is backed by 3,500 employers and many local councils such as Islington and Wandsworth.
Bexley council pays the real Living Wage, however as it is not accredited it is not required to demand its contractors do.
However, both Apex Lifts and Love Design Studios cited winning contracts with clients including councils as a primary motivator in becoming accredited.
Jeff Bakes, head of rewards for Ikea and long term RWL campaigner, told the Social Pioneers upfront costs are usually offset due to higher staff retention, better staff morale and standing out from the competition both with B2C and B2B.
Standen corroborated this saying that paying the RLW isn’t only a good thing to do but makes good business sense.
Apex prides itself on being a values led business, but Standen noted: “It doesn’t mean an awful lot to people if you don’t put your money where your mouth is and pay people a fair wage.”
Bakes said it costs on average £10,000 to recruit and Apex Lifts confirmed that it costs minimum 10% of a salary:
Standen said: “If you pay a living wage it kind of just pays for itself.
“People are just better at their jobs because they have been there for longer and because they’re longer term and they are the next trainers for the next generation.”
Andy Love, founder Bexley based Love Design Studios said that because staff are happy that they don’t need to pay for HR, people come to them.
He said: “I don’t think that we would attract the talent we do without the backstop of the real living wage.”
There are massive variations according to industry, with hospitality having the highest rate of jobs paid below the RLW at 48.1%, possibly due to wages being the majority of costs.
The owners of businesses on Bexley High Street who don’t pay the RLW and would prefer to stay anonymous cited high overheads exacerbated by the cost of living, but also said they paid the industry standard.
Bexley council has been contacted for comment.
Image credit: Alex McGregor licenced under Creative Commons
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