Published on:
22
November 2021
Clackmannanshire Council has been confirmed as an accredited Living Wage employer. Our Living Wage commitment will see everyone working at the local authority including regular workers employed through third party suppliers receive a minimum hourly wage of £9.90 per hour by May 2022.
The Council’s accreditation means there are now 23 Scottish Local Authorities with Living Wage accredited status.
This announcement comes on the back of Living Wage week (15-19th November), an annual celebration of the real Living Wage in the UK. The new real Living Wage rate of £9.90 was announced on Monday 15th November as part of Living Wage Week and is significantly higher than the government minimum for over 23s, which currently stands at £8.91 per hour.
The real Living Wage rate increase this year has largely been driven by sharply rising fuel and rent costs. The real Living Wage is different to the Government minimum wage for over 23s, called the ‘National Living Wage (NLW). While the real Living Wage is independently calculated based on living costs and is paid by employers voluntarily, the government’s NLW is based on a percentage of median earnings, and all employers are required to pay it.
In Scotland, more than 15% of all jobs pay less than the real Living Wage - around 350,000 jobs. Despite this, Clackmannanshire Council has committed to pay the real Living Wage and deliver a fair day’s pay for a hard day’s work.
There are now more than 2200 Living Wage employers in Scotland, 16 of which are based in Clackmannanshire including Ochil View Housing Association, Scottish Autism and The Ochil Fudge Pantry.
Since 2011 the Living Wage movement has delivered a pay rise to over 45000 people in Scotland and put over £240 million extra into the pockets of low paid workers in Scotland.
Clackmannanshire Council Leader Ellen Forson said: "We are delighted that we are now an official Living Wage employer. This links in to our community wealth building agenda and reinforces our commitment as a Council to reducing poverty and inequality for our employees."
Richard Lochhead, Scottish Government Minister for Just Transition, Employment and Fair Work, said: "Congratulations to Clackmannanshire Council on their accreditation as a Living Wage employer.
"Fair pay is fundamental to the Scottish Government’s Fair Work policy and local authorities are playing an important role in ensuring workers benefit from fair work practices.
"Already, there is proportionately five times more accredited Living Wage employers in Scotland than in the rest of the UK. This is a strong platform that we must continue to build upon and will create more secure, sustainable, and satisfying jobs that enables employers to grow the skilled, motivated workforce they need."
Peter Kelly, Director of The Poverty Alliance said: "Too many workers in Scotland are paid less than the real Living Wage and, at a time of rising costs, are struggling to stay afloat. The real Living Wage can offer protection from those rising costs. The Living Wage accreditation of Clackmannanshire Council is a signal of their commitment to tackle low pay and in-work poverty in the local communities they serve, and I hope that more follow the lead of Clackmannanshire Council and join the growing movement of businesses and organisations that are going further to ensure workers and their families have what they need to thrive."
Lynn Anderson, Living Wage Scotland Manager said: "Congratulations to Clackmannanshire Council on becoming an accredited Living Wage employer. Local authorities are not only large employers with significant spending power, but also have an important leadership role in the growth of the Living Wage employer movement. When major anchor institutions like Local Authorities become Living Wage accredited, this can encourage other employers to join and can result in extra spending to stimulate the local economy. We hope to see many more employers following their example, to help create a more just labour market in Clackmannanshire and across Scotland."
The real Living Wage is the only rate calculated according to what people need to make ends meet. It provides a voluntary benchmark for employers that choose to ensure their staff earn a wage that meets the costs and pressures they face in their everyday lives.
The UK Living Wage is currently £9.90 per hour. There is a separate London Living Wage rate of £11.05 per hour. These rates were announced on 15th November 2021 as part of Living Wage Week – the annual celebration of the Living Wage movement in the UK.
The rates are calculated annually by the Resolution Foundation and overseen by the Living Wage Commission, based on the best available evidence on living standards in London and the UK.
The Living Wage Foundation is the organisation at the heart of the UK movement of businesses, organisations and individuals who campaign for the simple idea that a hard day’s work deserves a fair day’s pay.
About Living Wage Scotland & The Poverty Alliance
Living Wage Scotland was established in April 2014 by the Poverty Alliance with the aim of increasing the number of employers in Scotland who are recognised for paying their staff the real Living Wage.
Living Wage Scotland is a partnership with the Living Wage Foundation and is funded by the Scottish Government.
The Poverty Alliance is the national anti-poverty network in Scotland with a long track record in working with individuals and communities affected by poverty to take action, and in providing support to influence policies solutions in Scotland.
Accredited Living Wage employers in Scotland span private, public and third sectors. SMEs make up 75% of the total number of employers and more than half of Scotland’s local councils are accredited. Find out more at www.scottishlivingwage.org/accredited