MORE local employers have signed up to the voluntary living wage scheme over the past year, surpassing the governement's minimum wage to replicate the 'real' living wage.
The Living Wage Foundation encourages employers to sign up to pay a "real" living wage, which is higher than the minimum wage and proportionate to living costs.
The rate, which is calculated by a group of economists and applies to employees aged 18 and over, currently stands at £9.90 per hour across the UK and £11.05 in London, to reflect the capital’s higher prices.
By comparison, the government's living wage stands at £9.50 per hour for people aged 23 and over, and £9.18 for over 21s.
At the start of July there were 19 accredited real living wage employers in Test Valley, up from 13 at the same point last year.
Accredited real living wage employers in Romsey include:
- Consort strategy Ltd, 11 Mallard Close
- Oxfam Books & Music, 25 The Hundred
- Barclays Bank PLC, Old Corn Exchange, Marketplace
- Nationwide Building Society, 33 The Hundred
- Oxfam Shop, 12 The Hundred
- Santander UK, 14 Marketplace
- The Healthcare Management Trust, in Newton Lane
- Southampton Traffic- A-Plant Lux, Unit 4 Budds Lane Trading Estates
- Shine Bright Cleaning Services, 80 Saxon Way
- AEC Protection, Unit 31, Basepoint Centre
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The soaring cost of fuel, energy and food has put wages under the spotlight. Elizabeth Horner, founder of Shine Bright Cleaning Services in Romsey, said: “The reason we pay above the living wage and are an Accredited Living Wage Employer is simple, it’s expensive to live especially with rising inflation and if you do a great job you deserve to be paid well. I understand how tricky it can be to pay for even the basics, I can only see the situation worsening with the forthcoming increases of energy bills.
“I believe to attract good staff it is important to offer a good hourly rate and for staff to feel valued. My theory is if the younger person is doing the same job why should they be paid £5 per hour less just because the law says we can?”
Currently, the cleaning service employs six part-time staff which is soon to expand to eight and continue growing to meet the company’s demand. As a single mother and a former primary school teacher, Lizzie sympathises with how difficult it can be to find a job that’s flexible with childcare responsibilities.
The local cleaner continued: “Our cleaning services are not the cheapest- nor the most expensive- in the area but it means we can pay our staff at above the Living Wage hourly rate.
“Hopefully with the increased awareness of the Living Wage movement and Trade Associations like the DCBN (Domestic Cleaning Business Network) wages will increase fairly and raise the profile of cleaning as an industry and alleviate the stigma of ‘just being a cleaner’ and help some realise just how much cleaners have helped and continue to help across every level of society. Not to forget, the tireless effort of many cleaners who worked during the pandemic to ensure a safe clean environment to stop the spread of covid-19.”
AEC Protection has a work force of around 150 to 200 casual employees and became an accredited real living wage employer a few years ago. Despite current financial pressures on the security industry the local company is keen to continue paying their staff wages proportionate to the rising cost of living.
Managing Director of the Romsey security company, Aidan Cooper said: “Often security companies don’t pay very well. In order to take a leap above the rest and put a system place where we were paying people fairly and appropriately and more than the living wage, we’ve taken a stand against some of the other security companies in the area by paying more money
“As a result, we have had to look at charging more money, but quality of service is something that we strive for. It’s about making sure people are compensated appropriately for the work that they perform.
“I think it’s really important for us as the established business that we are, that people look to us as an employer that isn’t just about making money and meeting the bare minimum for what staff need. In order for us to retain our membership to the scheme we have to keep moving with it.”
Katherine Chapman, director of the Living Wage Foundation, said the cost-of-living crisis has made increasing wages for the low-paid "more important than ever".
She said: “Paying the living wage is not only the right thing to do for struggling workers and families, but it’s also good for businesses, with employers benefitting from greater staff morale and productivity, and reduced staff absenteeism and turnover".
The foundation announced in May that 10,000 employers had signed up to the scheme – covering nearly 350,000 workers, or around 1 in 13 employees in the UK.
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As of July 1, there were 10,765 organisations paying the real living wage across the UK, up from 8,107 in 2021 and 3,383 in 2017. Researchers at Cardiff University estimate this has provided an extra £1.8bn to low-paid staff.
The Office for National Statistics announced that in April 2021 approximately 300,000 employees were paid below the government's living or minimum wage, excluding those furloughed at the time, with service workers more vulnerable to low pay.
The latest valuations from the Bank of England suggest inflation could hit 13% in the fourth quarter of this year.
For more information go to livingwage.org.uk/accredited-living-wage-employers.
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