What price a living wage? Understanding the impact of a living wage on firm-level wage bills
Co-published by IPPR and the Resolution Foundation, this short report analyses the likely impact of introducing the living wage as a new wage floor for a range of FTSE-listed businesses across a range of industry sectors.
The report concludes that for many, especially in banking, IT and construction, the average upfront wage costs are affordable, representing less than a 1 per cent increase. In other industries, such as retail and hospitality, where the proportion of lower-paid jobs is higher, the upfront costs would be higher, at between 4.7 and 6.2 per cent. So for these firms the report recommends a phased introduction, starting with a move to pay 90 per cent of the living wage.
The living wage is a voluntary measure designed to pay the lowest-paid workers enough to enable a decent standard of living, hand-in-hand with full take-up of available benefits and allowances. There are separate rates for London (£8.30 per hour) and elsewhere (£7.20).
In the news
We need a statutory living wage
The Guardian - 05 Nov 2013
Living wage zones would save money
New Statesman, Staggers blog - 31 Oct 2013
Clegg's cleaner punished for wanting living wage
Observer - 12 Nov 2012
Ed Miliband: subsidise firms paying living wage
Guardian - 09 Nov 2012
Living wage tide is turning, but it's not enough
Guardian - 06 Nov 2012
Kayte Lawton on the living wage (1hour 44mins)
BBC Radio Scotland Newsdrive - 06 Nov 2012
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