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This week (3-9 November) is Living Wage Week, where a range of activities and events will take place throughout the UK to highlight the need for a living wage and celebrate living wage employers. 

As part of its contribution, the Northern TUC is holding the Northern Living Wage Summit on Thursday 7 November at the Town Hall, South Shields. Keynote speakers include Shadow Work and Pensions Secretary Rachel Reeves and TUC General Secretary, Frances O’Grady.

Based on figures from a Resolution Foundation styudy publcished earlier this year there are approximately 213,000 workers in the northern region who are paid less than the living wage of £7.45*, which represents 22 per cent of the workforce. With the rising cost of living and ongoing cuts to welfare, an increasing number of households are being forced to rely on the minimum wage to make ends meet, or are turning to debt. This event is aimed at enabling the North East to take a leadership role in tackling poverty pay.

Later in the week the TUC will publish research looking at the savings to be made across the north east – in terms of taxes raised and benefits and tax credits that would no longer have to be paid – if more people in the region were paid the living wage.

A growing number of employers in the region are showing real leadership in supporting – and more importantly adopting the living wage, including Newcastle City Council, Children North East, Arriva and Aquila Way.

The Northern TUC Wage Summit will bring together a broad spectrum of perspectives from all sectors, representing employers, individuals and communities, along with those working in economic development, financial inclusion and child poverty, to explore and drive forward this important area of work.

Frances O’Grady, TUC General Secretary said: “More employers committing to pay a living wage – both in the North East and across the UK – would be a good start and would see thousands of low-paid families with more cash in their pockets.

“This much-needed wage boost would not only cushion people against recent hikes in energy and food prices but would also benefit local businesses as families begin to have the confidence to go out and start spending again on local high streets.

“Britain desperately needs a pay rise if the economy is to begin to grow at a faster rate and if ordinary working people are to share in the country’s hesitant recovery.”

Rachel Reeves, Shadow Work and Pensions Secretary said: “The country is facing a prolonged and severe cost of living crisis of which poverty pay is a major contributor.  A Living Wage can transform the lives of families.  I am a keen supporter of the Living Wage as it benefits the taxpayer, the worker and the employer.  I know that there is huge interest in the Living Wage across the north of England and it’s always good to talk with public, private and voluntary sector representatives as to how best we can make work pay.“

NOTES TO EDITORS:

- *The living wage is calculated by the Centre for Research in Social Policy at Loughborough University, based on the premise that this is the minimum pay rate needed to allow workers to lead a decent life, taking into account the cost of living.

 - The LW will increase to £7.65 in April 2014 for everywhere outside of London.

- The Living Wage Foundation cites an independent study examining the business benefits of implementing a living wage policy found that more than 80 per cent of employers believe that the living wage had enhanced the quality of the work of their staff, while absenteeism had fallen by approximately 25 per cent. Two thirds of employers reported a significant impact on recruitment and retention within their organisation; 70 per cent of employers felt that the living wage had increased consumer awareness of their organisation’s commitment to be an ethical employer; 75 per cent of employees reported increases in work quality as a result of receiving the living wage; and, 50 per cent of employees felt that the living wage had made them more willing to implement changes in their working practices. Over 45,000 families have been lifted out of working poverty as a direct result of the living wage. http://www.livingwage.org.uk/what-are-benefits

- 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:
Beth Farhat T: bfarhat@tuc.org.uk

Neil Foster T: nfoster@tuc.org.uk M: 07786717972

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