The Living Wage is a voluntary rate of pay which is based on the recognition that the national minimum wage (currently £6.50) does not pay enough for people to meet a basic quality of life.
Living Wage rates are £9.15 in London and £7.85 nationally.
In a new report, "The Living Wage: an economic impact assessment", KPMG has recently analysed the economic impact of raising the Minimum Wage to the Living Wage and concludes it would take just 1.3 percent of the national wage bill, lifting six million people out of poverty.
Businesses need to do what they can for the welfare of their staff. The minimum wage simply does not pay enough for families, in particular, to live on.
The problem of in-work poverty has been highlighted by the Social Mobility and Child Poverty Commission (PDF 1.78 MB) recently. KPMG’s own research, has found that the number of people earning less than the Living Wage has grown by over 147,000 in the last year to some 5.28 million people.
KPMG has also found that the Living Wage simply makes good business sense. Since introducing the Living Wage for its staff in 2006, KPMG has found that the extra wage costs are more than met by lowered recruitment churn and absenteeism, greater loyalty, and higher morale leading to better performance.
Turnover amongst KPMG’s contracted cleaning staff has more than halved since paying the Living Wage.
There will be a host of events during the week of 2nd November 2015 to promote, celebrate and inform on paying a Living Wage:
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.