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Why companies should pay the real Living Wage

Pay Real Living Wage. Impact SCore

The real Living Wage is independently-calculated by the Living Wage Commission, based on what people actually need to reach a ‘minimum acceptable living standard’. Companies should pay the real Living Wage because they are independently-calculated based on what people need to get by. 

But firstly for clarity, let’s outline the key differences between the Minimum Wage (MW), National Living Wage (NLW) and the real Living Wage, as at October 2020.

In 2016, UK Government introduced the NLW – the aim to reach 66% of median earnings by 2024 – it’s currently forecast to reach £10.50. And while the MW and NLW are statutory, the real Living Wage is voluntary.

Why you should care

It may not seem much to some people, but full-time workers paid the real Living Wage currently earn approximately £40 more a week than those on NLW. In London the difference is £95 a week.

Did you know:

  • 1 in 5 UK jobs pays below the RLW in the UK
  • Including 3.2 million women
  • And 1.8 million key workers (around 25%)
  • Nearly 3 million children are in working families, living in poverty (TUC, Child Poverty Working Households, 2019)

Things are slowly improving, although today over 6,500 businesses pay the real Living Wage.  Collectively they have put over £1bn into higher-pay. This means more than 220,000 people have had their wages uplifted as a direct result of the real Living Wage movement – helping those that struggle to keep the heating on, or put food on the table.

While business is especially difficult in 2020 with the implications of Covid-19, more and more consumers want to support businesses that do the right thing.  Paying the real Living Wage came out 2nd highest of the measures people care most about, with 83% of people saying they care.

Take Action Now!

9 in 10 of us want to live a more sustainable lifestyle, but less than 2 in 10 are actively changing our lifestyle.  We need something simple, but effective.

That’s where the free Impact Score® app. comes in.  It starts by showing you whether companies are behaving well or badly.  Who is doing the right thing across a series of measures you have told us are important to you (paying the Real Living Wage being one)?

Moreover, in a couple of clicks, you can tell businesses if you are happy with their performance or not.  And if not, that the business needs to improve or risk losing your custom.

Your voice is important.  Download the app in your mobile app store, and Make Change Happen.

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