Call to city firms to pay real Living Wage

NEWCASTLE has become a ‘Real Living Wage City.’ An ambitious plan was unveiled in spring which could result in thousands of workers getting a pay rise.

More than 100 firms and institutions attended an event at St James’ Park to find out about the benefits of paying the real Living Wage. This is an independently calculated rate of pay based on what employees and their families need to have a ‘’decent standard of living’’ which is higher than the national minimum wage.

Experts believe that this is an important and effective way of tackling levels of child poverty which in parts of Newcastle are almost 50% with seven in 10 youngsters in poverty coming from working households proving low pay is not enough to pay for life’s essentials. In 2023 Newcastle Council, a Real Living Wage employer, revealed its intention to make Newcastle a real Living Wage City with accreditation from the Living Wage Foundation.

With partners, it set up a task group to push forward the real Living Wage agenda and will set its three-year plan on how to achieve this. Employers, who don’t pay the real Living Wage, have been invited to find out how they can get involved.

According to the Living Wage Foundation, a national charity, more than 14,000 employers across Britain voluntarily pay the real Living Wage - of those 174 are in Newcastle. Together they employ 50,000 staff and pay the real Living Wage to 5,000 of their lowest paid aged over 18. The rate is £12 per hour.

The City Council is calling on all employers across Newcastle to recognise and address the issues of low pay within their workforce and across their supply chains, and to register as real Living Wage employers if they can.

Accredited real Living Wage employers in the city include

Newcastle University,

Newcastle United FC,

Newcastle Hospitals, Bellway Homes, Citizens Advice and many small businesses including pubs, restaurants, and other businesses.

According to the council paying it makes good business sense. Over 80% of accredited Real Living Wage employers claimed it had ‘’enhanced their reputation’’ and over half said it had improved the quality of those applying to work for them.

Research findings reveal that the extra money people will have in their pockets is spent locally with businesses and shops, creating jobs and economic resilience. It’s estimated 23,000 employees earn below the real Living Wage in Newcastle.

COUN STEPHEN LAMBERT, Vice-chair, Economy, Jobs and Skills Scrutiny Committee,

Newcastle City Council