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Living Wage Policy

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Our Commitment

We are committed to being a Living Wage Employer.

The Living Wage is a rate of pay per hour which is enough to make sure workers and their families can live free from poverty.

How much will the Council pay?

We will pay the UK Living Wage for outside of London of £9.30 per hour as calculated annually by the Resolution Foundation and overseen by the Living Wage Commission, based on the best available evidence about living standards in London and the UK.

What will the Council do as a Living Wage Employer?

  • We will ensure that all our employees are paid the Living Wage (this includes apprentices but excludes internships)
  • We will pay all of our contracted agency staff the Living Wage
  • We will increase the Living Wage paid if amended nationally (subject to budget) and implement as soon as possible
  • We will aim to encourage and promote on a case by case basis that all employees of contractors working on qualifying service contracts be paid the Preston Living Wage
  • We will encourage all employers both directly and through their sub contractors and promote the Living Wage principles when there are opportunities to so do in the City through regeneration projects or business location

Procurement

  • We will encourage and promote on a case by case basis that all employees of contractors working on qualifying service contracts be paid the Preston Living Wage
  • A qualifying services contract will involve an employee of the contractor being on the Council's premises or in contact with its staff for two or more hours per week for twelve or more consecutive weeks in the year
  • In these circumstances the Council will ask potential contractors the extent to which they are prepared to adopt Living Wage measures for any work they do as part of the Council contract. In letting any contract, the Council is required to demonstrate value for money and will consider how it can achieve its overall objectives on a case by case basis

European Tendering Considerations

Where the Council is lawfully entitled to consider a 'non-commercial' matter in its procurement processes, i.e. the terms and conditions of employment by contractors of their workers, we will ensure that this does not conflict with its duties under the E.C. Treaty of the need to ensure transparency, openness and non-discrimination and any further relevant European public procurement regime which may apply to a contract.

Responsibility

All Executive Members will be advised of qualifying service contracts in their area of responsibility in advance of any procurement.

In the event that the policy is not to apply to a qualifying service contract authority will be sought from Cabinet in advance of any contract award with relevant justifications.

The benefits of being a Living Wage Employer

  • We strive to make Preston a better place and is of the view that  payment of a Living Wage can have a positive impact on the delivery of services as well as economic and social benefits in the City
  • We are committed to providing better quality value for money services and feel the payment of a Living Wage can contribute to this goal

Promotion of the Living Wage

We will actively promote and encourage the payment of the Living Wage in Preston by having an accreditation scheme for Preston businesses.

The Council wishes to see the Living Wage of £9.30 per hour paid to all those employed by businesses and companies operating in Preston.

Policy Review

This Policy will be reviewed bi-annually by the Cabinet Member for Community Wealth Building.

Monitoring of the policy as required in individual situations will be the responsibility of the individual contract manager and the decision making body.

Last updated - November 2019

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