Paying the living wage

SIR – Although the living wage policy is to be welcomed, little thought appears to have been given to the effect that it will have on small charities, many of which employ staff on the minimum wage.

These charities usually exist on the income from their charity shops and the small number of grants now available. When the minimum wage is effectively abolished from April next year and replaced with the living wage, not only will all wages have to meet the lower limit but any differentials with those employees currently earning more than the minimum wage will need to be maintained.

Thus a small charity will be faced with a considerable increase in its wage bill, with few resources from which to fund it. Additionally, its suppliers will have to adopt the living wage, the cost of which will inevitably be passed on in the price of their goods.

It is difficult to see what the answer is, because any exemption for small charities would simply result in a lack of employees, since they could work elsewhere for more money.

Daphne Pearson Chairman of Trustees, Age Concern Redbrook, Monmouthshire