More employers must pay the rate, says Scotland's First Minister
Low paid workers across Scotland are set to benefit after the living wage was hiked to £8.45 an hour.
The 20p rise, from £8.25, was announced by First Minister Nicola Sturgeon, who urged more employers to sign up to the pledge to pay the rate.
Hundreds of organisations are now signed up to pay the rate, which is administered by the Poverty Alliance.
The new deal contrasts with the £7.20 an hour the Westminster government has set as its minimum wage, now known as the National Living Wage.
Paying the living wage makes sense - it’s an investment in people and the evidence shows it leads to increased productivity
Sturgeon visited the Bell Group, a UK wide painting and decorating contractor headquartered in Airdrie and the latest Scottish business to become an accredited living wage employer.
At the same time in Glasgow, 100 representatives from living wage accredited employers gathered at the Strathclyde Technology and Innovation Centre to celebrate the new rate.
Sturgeon said: “The new living wage of £8.45 will be a welcome pay rise for thousands of Scottish workers and ensures people’s basic wage continues to meet the real costs of living.
“Like the Bell Group, 630 employers in Scotland are now accredited living wage employers and I want to see all businesses implement the new Living Wage rates as soon as possible.
“For business, paying the living wage makes sense - it’s an investment in people and all the evidence shows it leads to increased productivity and reduced staff absence and turnover, while sending a strong signal to customers about fairness.
“Yet we also know around 20% of Scotland’s workforce earn less than the living wage. With low pay one of the main drivers of in-work poverty, it’s vital that employers who can pay the real Living Wage do so. We’ll continue to work with The Living Wage Foundation and the Poverty Alliance to encourage more businesses to recognise the benefits of paying the real living wage.”
Megan Strachan, 21, has worked at the Bell Group for three years and will receive the new rate. She said: “The difference the real living wage has made is that I’ve finally been able to buy and run a car, which has helped me be more independent.
“Before, I had to rely on family to get me to work or walk to work in the dark winter mornings. It takes the worry away - a financial problem isn’t just about finances, you think about it all the time.”
Peter Kelly, director of the Poverty Alliance, said: “Today’s announcement of the new, increased, Living Wage rates of £8.45 brings a welcome pay rise to thousands of workers across Scotland.
“According to KPMG, 430,000 people in Scotland still earn less than the wage they need to get by. This is an increase on the number of people struggling since last year’s figures.
“That’s why it’s more important than ever for leading employers to join the growing movement of businesses and organisations that are going further than the government minimum and making sure their employees earn enough to cover the real cost of living.”
The new rate was announced during Living Wage Week – a UK-wide celebration of the nearly 3,000 employers that have voluntarily committed to ensure employees and subcontracted staff working on their premises earn a real living wage.
