‘Living wage rise will only benefit 13%’

THE increase to the national living wage will only benefit a minority of people in Dundee.

That is according to statistics published as Chancellor Rishi Sunak announced a 6.6% rise to the national living wage in yesterday’s autumn budget.

The increase takes the national living wage from £8.91 per hour for those aged 23 and over to £9.50 per hour from April 1.

The rise will give eligible full-time workers an extra £1,200 a year, according to the chancellor.

The increase will only benefit 13% of people in Dundee, according to statistics from think tank Centre for Cities.

Its director of policy and research Paul Swinney said: “Just over one in 10 working people in Dundee will be supported by the national living wage increase.

“While this is good news for them, it does not address the underlying reasons why people are on low pay: a lack of skills and a lack of good, well-paid jobs in the local area.

“Both the UK and Scottish governments need to set out a long-term plan for upskilling people and attracting in good jobs to Dundee and elsewhere.”

Dundee councillor Lynne Short said the increase was “not good enough”.

She said the rise in the national living wage only brings it in line with the current real living wage, which is due to rise.

Ms Short said: “Already next April, that (real living wage) will be ahead of the national living wage.

“The national living wage applies to those 23 and over.

“If you are an apprentice, or you’re under 18 you are still going to be on £4.81. “If you’re 18 to 20 it is £6.83.”

Ms Short, a member of the Dundee Living Wage Action Group, said any increases need to be equal.

The government proposals mean young workers are seen as “fodder”, she said.

The Maryfield SNP member said people who do benefit from the 6.6% increase may not find themselves much better off.

Council tenants in Dundee could face a rent rise of up to £108 per year.

“It might be going up 6.6% but we know ourselves how much everything is going up,” Ms Short said.

Fife-based InchDairnie Distillery is a living wage employer.

Managing director Ian Palmer feels it is important to ensure high-quality products are being made by “reasonable” employers.

“We are producing a premium product.

“It is wrong that it should be produced from a low-wage supply chain.

“We expect high quality from our supply chain and we expect them to be reasonable employers.”

Ms Short hopes companies across the city will sign up for the real living wage scheme.

“We find that companies have less of a churn of staff.

“It’s benefiting all parties, and it’s helping to keep money in the local area.

“It keeps the local economy going.”