Mike Kelly, head of Living Wage at KPMG, comments on the State of the Nation 2014 report by the Social Mobility and Child Poverty Commission highlighting that the UK should commit to becoming a Living Wage nation by 2025. Mike said:
“Committing to voluntarily becoming a Living Wage nation by 2025 is a realistic ambition given the pace of change over the last two years. For far too long have low income households been struggling to make ends meet. The fact remains that more than five million people are earning less than they need to live on. Too many families still struggle to afford the basics, meaning we face a scenario that, in 2014, should have long been consigned to the footnotes of history.
“Achieving this target by 2025 for many may seem farfetched for some, but more than 900 organisations have already recognised that employing staff stuck in the working poverty trap is bad for business. Of course, change cannot happen instantly, but making an initial assessment is an important first step. Through careful change management, businesses can effectively become a Living Wage employer by the set date.
“We have already seen the benefits of paying a Living Wage in terms of lower staff turnover and increased productivity. Put simply, it means moderate investment for maximum return.”
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.