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Council partner backs real Living Wage to help staff avoid hardship

Posted on 8 Nov 2023

The real Living Wage helps staff feel valued and enjoy a better standard of living, according to a social enterprise that works closely with North Ayrshire Council.

The Council has proudly been a real Living Wage Employer since 2011 and continues to champion the cause to boost employee’s income and well-being.

Living Wage Week is the annual celebration of the Living Wage Movement and runs from November 6 to 12.

Around 3400 employers are already accredited in Scotland and, as a result of this commitment, 64,000 workers across the country have received a pay rise.

The new hourly pay rate of £12 for 2024 - which is independently calculated by The Resolution Foundation – was announced on October 24 and is based on what people in the UK need to earn to afford a decent standard of living.

It is paid voluntarily by employers, and the price of childcare, transport, heating and housing are all taken into account when the rate is set.

Another employer that is proud to be Living Wage accredited is not-for-profit organisation Cunninghame Housing Association (CHA), in Ardrossan - a social landlord and social enterprise that has been operating since 1984.

Financial inclusion is a key part of the CHA ethos and a Financial Inclusion Team works with residents to help solve financial problems by supporting them with things like income maximisation and getting access to welfare benefits.

Advice is also given on fuel poverty through the association's subsidiary company Citrus Energy - which offers a service called Lemond Aid to help people reduce energy bills.

Scott Mould, Head of Social and Economic Development at CHA, said now, more than ever, it is important to be a real Living Wage employer.

Mr Mould explained: “We have committed to the real Living Wage across our group of companies as it’s important to us to ensure that all staff have access to a costed minimum wage rate, ensuring a better quality of life and preventing hardship.

“We would absolutely encourage others to sign up as accredited organisations.  There can be some initial hurdles in relation to staff already above the RLW rate, but when explained we found everyone was accepting and supportive of ensuring that all staff achieve a minimum acceptable rate of pay. 

“Staff morale has increased and retention has also improved.  Due to higher levels of staff retention we haven’t had much of an opportunity to test recruitment but I feel sure that with RLW as a minimum rate, attracting applicants will also prove easier. 

“The biggest effect was felt by our subsidiary charity Cunninghame Furniture Recycling Company with the decision equating to a substantial increase in wages and quality of life for some staff.”

North Ayrshire Council’s top priorities include tackling child poverty and supporting residents through the Cost-of-living Crisis. And the three key drivers of child poverty are income from employment, income from social security and the cost of living.

Councillor Marie Burns, chair of the Council’s Tackling Child Poverty & Cost of Living Board, said: “It is encouraging to see our partner organisations, including Cunninghame Housing Association, backing the real Living Wage.

“It is important, now more than ever as residents continue to navigate the Cost-of-Living Crisis and we head into winter, that people earn a wage that gives them a decent standard of living.”

The two key requirements for businesses to become accredited are:

  • All directly employed staff aged 18 and over must be paid at least the real Living Wage and
  • to the extent permitted by law, all regular contracted workers must also be paid the real Living Wage.

Mr Mould added: “It's been humbling seeing how staff received the news when we were initially accredited.  The difference it made to them was clear to see. 

“They also stated how they feel more valued as an employee.  It’s helped staff improve their finances and assisted them with their day-to-day lives massively - especially during the current Cost-of-Living Crisis and increased inflation rates.  Staff are feeling more supported as employees and, as a result, are happier at work.”

Living Wage Week runs from November 6 to 12, and you can find out what is happening by using #LivingWageWeek on social media.

To find out more about the Real Living Wage, go online to https://scottishlivingwage.org/

Our photo shows Council Leader Marie Burns and Depute Leader Shaun Macaulay with Scott Mould during a recent visit to Cunninghame Housing Association.

If you need help with Cost-of-Living support please visit the Council’s dedicated webpage at https://www.north-ayrshire.gov.uk/cost-of-living/

Here, you will find a wide range of advice on energy, benefits, food and clothing, health and wellbeing and a section dedicated to our business community.

There is also a handy Council information leaflet online here https://tinyurl.com/43bj33ec that gives information about clothing grants and free school meals, Council Tax reduction, Community Larders and more.