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| The living wage is a powerful weapon against poverty. More must pay it | The living wage is a powerful weapon against poverty. More must pay it |
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| Poverty is not merely living life on a small budget. It is a daily scramble, corroding those caught in its traps. It decays hope, self-respect and stability. It cripples all those it encounters, forcing its victims to spend each day trapped in the fear and humiliation associated with low pay. This reality faced by many working families living on minimum wage is a blight on society. | Poverty is not merely living life on a small budget. It is a daily scramble, corroding those caught in its traps. It decays hope, self-respect and stability. It cripples all those it encounters, forcing its victims to spend each day trapped in the fear and humiliation associated with low pay. This reality faced by many working families living on minimum wage is a blight on society. |
| In my Durham diocese alone, there are 44 food distribution centres – a number of which also run debt centres. The city food bank has a fuel voucher distribution service for families forced to choose between heating their homes and feeding their families: it’s run by a remarkable team of volunteers. In one of the world’s wealthiest nations this should not be necessary; yet it is. | In my Durham diocese alone, there are 44 food distribution centres – a number of which also run debt centres. The city food bank has a fuel voucher distribution service for families forced to choose between heating their homes and feeding their families: it’s run by a remarkable team of volunteers. In one of the world’s wealthiest nations this should not be necessary; yet it is. |
| Rather than waiting until our friends and fellow citizens fall into poverty, we should be transforming not just our welfare system, but also our workplaces. By ensuring wages are set to reflect a real cost of living and that working hours are the right length and reliable, people need not live a life of constant struggle. | Rather than waiting until our friends and fellow citizens fall into poverty, we should be transforming not just our welfare system, but also our workplaces. By ensuring wages are set to reflect a real cost of living and that working hours are the right length and reliable, people need not live a life of constant struggle. |
| Almost 60% of people in poverty are in families where at least one person is in work. As rents rise and bus and train fares increase, it’s often the poorest who are hit the hardest. The real living wage – a voluntary pay rate adopted by more than 4,700 employers – rises today to £9 an hour in the UK and £10.55 in London. This is a way in which every employer, from a small church to a big FTSE company, can play its part in ending the injustice of poverty. | Almost 60% of people in poverty are in families where at least one person is in work. As rents rise and bus and train fares increase, it’s often the poorest who are hit the hardest. The real living wage – a voluntary pay rate adopted by more than 4,700 employers – rises today to £9 an hour in the UK and £10.55 in London. This is a way in which every employer, from a small church to a big FTSE company, can play its part in ending the injustice of poverty. |
| During the past week, I have heard powerful stories from two women whose lives have been transformed by their employers. Alison, a Heathrow airport worker, described her life as one riddled with anxiety about growing debt until her employer announced that they would be raising her pay to the real cost of living. Lynne, meanwhile, was in a minimum-wage cleaning job with shifts as long as 15 hours a day. When she moved to FTSE 100 insurer Aviva, a longstanding supporter of a real living wage, she was able to reduce her hours to manageable levels and spend more time with her family. | During the past week, I have heard powerful stories from two women whose lives have been transformed by their employers. Alison, a Heathrow airport worker, described her life as one riddled with anxiety about growing debt until her employer announced that they would be raising her pay to the real cost of living. Lynne, meanwhile, was in a minimum-wage cleaning job with shifts as long as 15 hours a day. When she moved to FTSE 100 insurer Aviva, a longstanding supporter of a real living wage, she was able to reduce her hours to manageable levels and spend more time with her family. |
| When employers treat their employees with dignity and respect, they also help to realise the potential of their staff, and the benefits for all are clear to see: one piece of research from the Living Wage Foundation found that worker absenteeism fell by 25% after employers gave the real living wage. Employees are not raw materials to be bought at the cheapest price. Treat others as you would wish to be treated yourselves – and it will pay dividends. | When employers treat their employees with dignity and respect, they also help to realise the potential of their staff, and the benefits for all are clear to see: one piece of research from the Living Wage Foundation found that worker absenteeism fell by 25% after employers gave the real living wage. Employees are not raw materials to be bought at the cheapest price. Treat others as you would wish to be treated yourselves – and it will pay dividends. |
| There is also a need for the government to do more. While the higher minimum wage for over-25s is a step in the right direction, it is not calculated on the needs of the British people, and unhelpfully discriminates against those entering the workforce for the first years of their working lives. Workers on a government minimum currently earn £7.83 hourly, based on 55% of median earnings in the UK. The real living wage campaign instead asks business owners to pay according to costs of living, with a higher rate in London, where costs are higher. It has the potential to pull 1.7 million people already working full-time out of poverty. | There is also a need for the government to do more. While the higher minimum wage for over-25s is a step in the right direction, it is not calculated on the needs of the British people, and unhelpfully discriminates against those entering the workforce for the first years of their working lives. Workers on a government minimum currently earn £7.83 hourly, based on 55% of median earnings in the UK. The real living wage campaign instead asks business owners to pay according to costs of living, with a higher rate in London, where costs are higher. It has the potential to pull 1.7 million people already working full-time out of poverty. |
| Those of us on middle and higher incomes simply do not grasp the significance of this increase. For us, a tighter budget might mean one or two fewer coffees a week, or trimming back on our leisure activities and holidays. For those on minimum wage it is the difference between being able to feed the children well, buy new school shoes, or avoid a debt crisis. | Those of us on middle and higher incomes simply do not grasp the significance of this increase. For us, a tighter budget might mean one or two fewer coffees a week, or trimming back on our leisure activities and holidays. For those on minimum wage it is the difference between being able to feed the children well, buy new school shoes, or avoid a debt crisis. |
| Many organisations from across the business spectrum have recognised this and now pay the real living wage – including my own diocese. My area is home to many thousands of hard-pressed families who have been hit by economic upheaval and the loss of industry. Communities look to new employers for jobs and prosperity – and established organisations can do their bit too. Close to my own home, I’d like to see Newcastle United football club follow the example of Liverpool, who recently joined the real living wage movement. | Many organisations from across the business spectrum have recognised this and now pay the real living wage – including my own diocese. My area is home to many thousands of hard-pressed families who have been hit by economic upheaval and the loss of industry. Communities look to new employers for jobs and prosperity – and established organisations can do their bit too. Close to my own home, I’d like to see Newcastle United football club follow the example of Liverpool, who recently joined the real living wage movement. |
| Today, I’m celebrating those who do pay the living wage – and along with schools, churches, charities and fellow real living wage employers, asking questions of those who don’t. | Today, I’m celebrating those who do pay the living wage – and along with schools, churches, charities and fellow real living wage employers, asking questions of those who don’t. |
| • Paul Butler is the of Durham and children’s advocate on behalf of bishops | • Paul Butler is the of Durham and children’s advocate on behalf of bishops |
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