The Living Wage in the City of London

The following is a briefing note circulated to participants in our Living Wage Week roundtable, help on November 8th at St Katharine Cree. It outlines what the Living Wage is, the reality of low pay in the City of London, and opportunities to make a difference.

The Living Wage is an hourly rate of pay set independently and updated annually, calculated according to the basic cost of living in the UK.

The calculation is overseen by the Living Wage Commission, an independent body drawn from leading Living Wage Employers, trade unions, civil society and academics.

Paying the Real Living Wage lifts workers and their families out of poverty, and justly compensates them for their labour.

• Real Living Wage: £13.15 (London), £12 (UK)

• Government set National Living Wage: £10.42 for 23+

• Real Living Wage pays £5,323 year more in London, £3,081 elsewhere

The Living Wage Foundation accredits Living Wage Employers who confirm that their directly employed staff are being paid the current Living Wage rates and have a plan in place to extend the Living wage to relevant third-party staff.

Living Wage in the City of London

• Of the 22,305 businesses in the City of London, 324 are accredited Living Wage Employers

• 3.6% / 21,132 workers in City of London paid below real Living Wage

• Accreditations by industry:

  • Finance/ Banking/ Tech (93)

  • Law (52)

  • Consultancy/ Professional Services (51)

  • Hospitality (8)

  • Religious Institutions (4)

  • Retail (1)

• 2012, 13 accreditations uplifted 928 workers to the Living Wage

• 2020, 32 accreditations uplifted 421 workers to the Living Wage

Given its international leadership role and financial productivity, the City of London has the opportunity to become a global leader on just pay practices.

If the City of London becomes a place where no worker is paid below the Living Wage, it will exemplify good employment practice, and lead the way for national and international change.

Anna Purchas, senior partner for KPMG’s London office said:

“In the current jobs market where recruiting and retaining talent is crucial to the growth agenda of so many businesses, being able to offer a real living wage is certainly an important recruitment tool, but also the right thing to do. We know that CEOs are increasingly putting ESG at the heart of their long-term growth strategies to deliver a sustainable recovery, and make decisions that benefit wider society and address societal challenges — from gender and race, to equity and social mobility. Paying the real Living Wage makes a huge difference to people’s lives affecting overall health, mental health, family and social life, performance at work and the ability to participate fully in society.”

The Joseph Centre for Dignified Work strives to engage both workers and businesses in the City of London to build a new and just social covenant between them. This ‘new deal’ will deliver fair pay and dignity to all workers as well as supporting businesses to achieve new standards for social responsibility.