£45m capital boost from ‘real’ living wage – study

A NEW report shows that a quarter of Cardiff’s economy could benefit from a £45m boost if the lowest-paid workers were uplifted to the “real” living wage.

A new study by the Smith Institute think-tank suggests 35,000 people in the capital and surrounding areas would see an average annual pay rise of £1,170, or an extra £22 a week, if all employers adopted a rate of £8.75 an hour.

There are currently 140,000 people earning below the Real Living Wage in Cardiff, a total of 24% of all workers in the region.

Dave Horton, co-chairman of Citizens Cymru Wales, which leads the Living Wage for Wales campaign, said: “This research shows how crucial it is that more organisations in Cardiff and the surrounding areas sign up as accredited Real Living Wage employers, and so lift their workers out of poverty pay.

“It is really disappointing that major organisations, including many receiving taxpayers’ money, are contributing to in-work poverty by paying less than the Real Living Wage of £8.45 an hour.

“We have a plan to work with Cardiff Council, who have shown real leadership on this issue, to make our city the first Living Wage City in the UK.”

The study claims that the increase in pay would result in a £15m windfall to the Treasury from the area in tax receipts and benefits savings.

Tess Lanning, director of the Living Wage Foundation, said: “By championing the Real Living Wage, local authorities can build successful, dynamic local economies and, most importantly, ensure that the proceeds from growth are fairly shared.”