More large employers must commit to paying the living wage, says TUC

The TUC has today (Monday) welcomed the increase in the living wage rates but warned that too few large employers have committed to paying it despite an £83bn increase in their cash reserves over the last five years.

The living wage is a voluntary rate of pay designed to help low-paid workers to afford a basic standard of living. The new rate is £7.65 an hour, and £8.80 an hour in London. The adult minimum wage rate is £6.31 an hour.

Figures from the Office for National Statistics (ONS) show that the UK’s biggest companies increased their cash reserves by £83bn between 2007 and 2012. But some employers are refusing to use these rising cash reserves to offer decent wage rises that would increase demand in the economy, says the TUC. Instead, workers are suffering the longest wage squeeze in over a century and in-work poverty continues to grow.

Although hundreds of employers have adopted the living wage in the past year, the TUC believes that far more companies can afford to sign up to this important benchmark. There is no excuse for cash-rich employers to deny low-paid staff a decent wage, says the TUC.

TUC General Secretary Frances O’Grady said: “The rise in the living wage will mean a big income boost to thousands of low-paid workers across the UK.

“But many more low-paid workers should receive the living wage. Many large employers, in particular, can afford to pay a living wage, but are choosing to sit idly on rising cash piles rather than use their resources productively through better pay rises.

“With a 20p per hour pay rise giving a full-time worker an extra £400 a year, fair pay is by far the most effective way to tackle the cost of living crisis and make work pay. Britain needs a pay rise and signing up to the living wage is an important way to achieve it.”

NOTES TO EDITORS:

- The living wage rate in London is set by the Greater London Authority and the living wage rate for the rest of the UK is set by the Living Wage Foundation.

- The independent Living Wage Foundation has today announced the latest tranche of accredited living wage employers. More announcements are expected in the next few months. The TUC is itself one of the many employers who have been accredited as living wage employers by the foundation. For more information see the Living Wage Foundation website: - www.livingwage.org.uk

- According to the latest figures, the growth in financial reserves for large UK non-financial companies stood at £477bn in 2012 (Source: UK National Accounts 2013, table 3.3.9 Private non-financial corporations, line AF2 total currency and deposits).

- The TUC’s campaign plan can be downloaded from www.tuc.org.uk/campaignplan

- All TUC press releases can be found at www.tuc.org.uk

- Follow the TUC on Twitter: @tucnews

Contacts:

Media enquiries:
Liz Chinchen   T: 020 7467 1248    M: 07778 158175    E: media@tuc.org.uk
Rob Holdsworth    T: 020 7467 1372    M: 07717 531150     E: rholdsworth@tuc.org.uk