Member Article

Low paid workers should be cut to 1 million by 2020 says the Living Wage Commission

According to the Living Wage Commission, the UK government should make it a target to reduce the amount of low paid workers in the UK to 1 million by 2020.

The commission is an independent body bringing together names from business, trade unions and civil society.

In 2014 the UK living wage rate stands at £7.65 an hour, and the London living wage is set at a higher rate of £8.80 per hour, to take account of the higher cost of living in the capital.

By contrast, the national minimum wage currently stands at £6.31 an hour.

According to the BBC, chairman of the Living Wage Commission, Archbishop of York, Dr John Sentamu said: “Working and still living in poverty is a national scandal.

“For the first time, the majority of people in poverty in the UK are now in working households. The campaign for a living wage has been a beacon of hope for the millions of workers on low wages struggling to make ends meet.

“If the government now commits to making this hope a reality, we can take a major step towards ending the strain on all of our consciences. Low wages equals living in poverty.”

Umunna Chuka Umunna MP, Labour’s Shadow Business Secretary, commenting on the report of the Living Wage Commission, said: “This report makes a powerful and timely case for tacking the growing scandal of low pay. Under David Cameron’s government, we’ve seen a rising tide of insecurity as ministers have attacked and undermined people’s rights at work.

“ That’s why the next Labour government will help more firms pay a living wage through Make Work Pay contracts and will repair the link between hard work and reward by restoring the value of the minimum wage, raising its ambition through a new five-year target, and supporting the high-skilled, better-paid jobs we need to see.“

Dr Adam Marshall, director of policy and external affairs at the British Chambers of Commerce said: “Some businesses simply cannot afford to pay a living wage just yet - which is why the commission rejected a compulsory living wage.

“The task now is to support as many employers as possible to make this transition, because paying the living wage can benefit employers as well as their staff.”

This was posted in Bdaily's Members' News section by Clare Burnett .