Latest in Employment Law>Articles>Futureproof your business with Living Wage accreditation: Good for Business, Good for Workers, Good for Society
Futureproof your business with Living Wage accreditation: Good for Business, Good for Workers, Good for Society
Published on: 09/12/2024
Issues Covered: Pay
Article Authors The main content of this article was provided by the following authors.
Mary McManus
Mary McManus

More than 120 employers across Northern Ireland are now committed to paying the real Living Wage. With well over half having signed up in the past two years this demonstrates a growing dedication to fair pay in the region and a growing recognition among local employers that it is good for business.

In June this year, Advice NI launched Living Wage NI in partnership with the Living Wage Foundation and the Department for the Economy. Despite Northern Ireland consistently having one of the highest rates of jobs paid below the real Living Wage, until June it had been the only region in the UK without a local body promoting the real Living Wage and accrediting employers. The real Living Wage is the only UK wage rate independently calculated based on the cost of living, ensuring that workers receive a fair wage that meets their everyday needs. 

Unique Home Care NI and The Link Family and Community Centre are among the latest employers to join the growing Living Wage NI network. The network now includes a diverse range of organisations, from NI Executive, Invest NI, Queen’s University Belfast and Belfast City Council to smaller businesses such as charities, hairdressers and bars. 

The Living Wage movement originated as a grassroots campaign in East London in 2001, aimed at tackling in-work poverty and ensuring that workers earn enough to participate fully in family and community life. In 2011, Citizens UK launched the Living Wage accreditation scheme for employers, and since then, over 15,500 employers across the UK have signed up, delivering pay rises to over 460,000 workers. The current real Living Wage is set at £12.60 per hour across the UK and £13.85 per hour in London, significantly higher than the government's National Living Wage of £11.44, which applies only to workers aged 21 and over. 

Recent data shows that yet again, Northern Ireland has the highest rate of jobs paid below the Living Wage in the UK, with one in five jobs falling below this threshold compared to just over one in ten in Scotland. Increasing the number of employers who pay the real Living Wage is crucial in addressing this gap. With research showing that those paid below the real Living Wage are struggling to buy food, pay household bills and heat their homes, it is vital to ensure that people are paid at least the real Living Wage. 

However, the benefits of paying the real Living Wage extend beyond employees. Despite a challenging economic climate, 7,500 employers across the UK have signed up to pay the real Living Wage since 2021, with nearly 1,500 joining in 2024 alone. Employers have reported improvements in recruitment, retention, and reputation, with 94% of Living Wage employers noting business benefits from their accreditation, according to research by Cardiff Business School.  In our experience of working with local employers they recognise that their people are their greatest asset, and they want to ensure they are paid a fair wage.  The accreditation is a means to demonstrate their commitment to their staff and their core values.   

The real Living Wage is also good for society.  A report by the Smith Institute in 2021 found that if 25 percent of workers in NI were uplifted to the RLW it would contribute almost £85 million to the local economy.  We know that low-paid workers spend more of their cash in their local economies, an increase in their spending power will benefit local firms too.

Living Wage NI is funded by the Department for the Economy and is key to one of the Minister’s four priorities for a new Economic Mission, Good Jobs.  Since June 2022, businesses tendering to the NI Executive must ensure that their workers are paid a Living Wage. With public sector organisations like the, the NI Executive, the two Universities and Belfast City Council accrediting as Living Wage employers, more and more winning public sector contracts is becoming dependent on paying the real Living Wage.   

The Living Wage is good for business, good for workers and good for society. Join the growing Living Wage NI movement and together let’s make NI a Living Wage region. 

How to become an accredited LW Employer. 

In order to become an accredited Living Wage Employer businesses must ensure that all directly employed staff are paid the real Living Wage and pay or have a plan in place to pay indirectly employed staff the Living Wage.  The cost varies according to the size of an organisation, starting at £69 per year for those with ten or fewer employees.  

What local employers have to say about becoming an accredited Living Wage Employer.

USPCA

“The Board of the USPCA implemented a policy of paying the Real Living Wage over a year ago, in order to recognise the impact of the rising cost of living on staff. The animal care and charity sectors are not well-paid in general, but we wanted to ensure that our dedicated staff team are paid a fair wage for the amazing work that they do.” Siobhan McHaffie, Director of Operations & Development

Smiley Monroe

“Our decision to become a Living Wage Employer was rooted in our commitment to fairness and the well-being of our employees. Recognising that our workforce is key to our success, we wanted to ensure everyone earns a wage that truly reflects the cost of living. Aligning with our core values, this decision supports our mission to be a business that values, respects, and fairly compensates its employees.”  Jayne Peters, Director of People & Culture

Clonard Credit Union

“At CCU we are committed to making positive changes that will have a valuable impact to our employees and their families. Now as an accredited living wage employer, we are delighted to show our commitment to this ethical benchmark.  We are very clear in CCU that our employees are our greatest asset.” Terry McCrudden, CEO

You can find out more about accrediting as a real Living Wage Employer and joining the growing NI Living Wage Movement here.

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Disclaimer The information in this article is provided as part of Legal Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article. This article is correct at 09/12/2024