Tipping point reached on living wage as new rates announced

UNISON, the UK’s largest union, today welcomed the 25p rise in the Living Wage and called for the gap between the national minimum wage and the Living Wage to be closed, to help eradicate the scandal of poverty pay.

A campaign led by UNISON,together with the National Union of Students (NUS) and Labour students, has already lifted more than one thousand education workers out of poverty pay and onto a Living Wage.

The campaign, in Further Education (FE) colleges across England and Wales, has reached a tipping point in just six months; 58% of colleges now pay the Living Wage – only a minority signed up previously.

UNISON will be pressing for these workers to benefit from the new Living Wage rates announced today – set at £8.55 an hour in London and £7.45 outside of the capital.

For some workers – the majority of whom are women working as nursery nurses, cleaning, catering and care workers – the campaign has meant a pay rise of more than £1 an hour. This has made a huge difference to their lives, and to their families.

The campaign has united workers, students, community groups employers and even college principals. It was given a boost by a joint letter from UNISON General Secretary, Dave Prentis, and David Miliband MP, to colleges calling on them to pay the Living Wage.

In response to UNISON’s campaign the employers’ organisation, the Association of Colleges (AoC) is also recommending that all colleges in England – increase their minimum rates of pay rate to £7.30 per hour.

Increasing numbers of universities, including Kent University, the University of Manchester, Surrey University and Senate House are also paying the Living Wage. With momentum building across the UK.

On Wednesday 7 November, at an event in the House of Commons hosted by David Miliband MP and Rachael Reeves MP, fresh Living Wage campaigns will be launched with targets in 10 universities and a number of FE colleges.

The next round of the campaign will also focus on making sure that all contractors working for FE colleges and universities pay the Living Wage.

Dave Prentis, UNISON General Secretary, said:

“This Living Wage Week there is a lot to celebrate. The new rates announced today will help families to make ends meet at a time when the cost of basics such as food and fuel have been rising. The challenge now is to close the gap between the national minimum wage and the Living Wage.

“Through the work of just our Further Education campaign alone, more than one thousand workers and their families have been pulled out of the misery that is poverty pay. This can change lives. For some parents it means they don’t have to take a second job and will have more time to spend with their children. Others now have to worry a little less about putting the heating on in winter.

“And our campaign will carry on building. We will focus on ten more universities and even more FE colleges. And we will turn our firepower onto the private contractors who do not pay the Living Wage. We are calling on colleges to require contractors working for them to pay the Living Wage. Poverty pay should have no place in the 21st century and we need all employers to wake up to this reality.”

Marie Gilluley, Principal of Bolton College, who pays the Living Wage, said:

“Bolton College was pleased to be able to support UNISON’s campaign for a Living Wage. We strongly support the message behind the Living Wage campaign, that every worker should be paid enough to provide for themselves and their family with the essentials of life.

We very much believe that all of our staff hold equal importance when it comes to contributing to the overall success of the college.

“For Bolton College, the commitment to paying our lowest paid staff a living wage is one way that we can engage with our staff and express how we value the work that they undertake in support of our learners.

“As an employer we also see this commitment as positive employee engagement and believe that this will have a positive impact on morale, customer service and turnover levels.”

UNISON member Fran Massey was one of the cleaners at The Manchester College who successfully campaigned for a living wage, said:

“It’s made it easier as a family. When you get home from work you can relax – not worry about robbing Peter to pay Paul.”

Ms Massey’s children are both keen basketball players who, before she received the living wage, had to take it in turns to play.

“One week one would play and the other had to watch. Since we’ve had the pay rise they can both play together.”

Notes

This is part of UNISON’s programme of events for Living Wage week – taking place from 4-10 November.

The Living Wage for London set by Greater London Authority (GLA) is £8.30 per hour. For the rest of the UK the Living Wage is £7.20. This is set by Loughborough University using Minimum Income Standard methodology developed by the Family Budget Unit and funded by the Joseph Rowntree Foundation.

The union is campaigning for all workers in the public sector, including those working for contractors, to pay the Living Wage.

In the NHS, the bottom rate for all workers is £7.24 per hour, 4p per hour above the current Living Wage rate.

More than 200,000 Local Government Workers earn less than Living Wage.

UNISON will be at an event with Ed Miliband on the Monday of Living Wage Week (Monday 5 November) – the day that new rates of the Living Wage are announced.

UNISON will also be giving evidence to the Low Pay Commission on the Thursday of Living Wage Week (Thursday 8 November).

ENDS