Real Living Wage - early implementation of new rates for council staff

13 November 2020

Preston City Council is proud to have been the first Real Living Wage employer in the North, having paid the Living Wage for over 10 years.

We are proud to say that close to 50 other businesses and organisations in Preston have also joined us and pay their employees the Real Living Wage.

This week (9 - 15 November) is Living Wage week and to tie in with the new pay rates announced by the Living Wage Foundation, the Leader and Cabinet requested the new rates be effective from 1 December 2020 as opposed to waiting until April 2021, when they would usually be implemented.

The new rate of £9.50 per hour will be the minimum rate payable to workers engaged by the council, including casual and agency workers.

Councillor Matthew Brown, Leader at Preston City Council, said,

"Implementing these new rates immediately helps those affected at the council to be rewarded fairly at the earliest opportunity, particularly as they have been working tirelessly throughout the pandemic, keeping our services going.

"Statistics show that Preston has the lowest percentage of employees who receive less than the real living wage in Lancashire often benefitting women and minority communities who suffer disproportionately from low pay.   

"As a Labour council we believe in positive economics and we want to do all we can to increase wages for those who live and work in our city. This in turn boosts our local economy and creates more wealth, opportunities and jobs. This is the type of positive economics we want to further and is essential as and when we emerge from the pandemic and current national and local restrictions."

Councillor Freddie Bailey, Cabinet member for community wealth building, added,

"As a city council and standard bearers for community wealth building, it's only fair and important that our staff are paid a real living wage.

"It's an incredibly challenging time for us all, but the new Living Wage rate will give a boost to our key workers who have kept our city and economy going. 

"This provides much needed security and stability, especially when times are hard. These are the employees that will help in the rebuilding from this crisis." 

More information

Living Wage Week, from 9 - 15 November 2020, is a UK-wide celebration of the almost 7,000 employers that have voluntarily committed to ensure employees and sub-contracted staff earn a real Living Wage. 

What is the real Living Wage? 

The real Living Wage is an hourly rate of pay set independently and updated annually (not the UK government's National Living Wage).

It is calculated according to the basic cost of living in the UK, and employers choose to pay the Living Wage on a voluntary basis. According to the Living Wage Foundation, since 2001 the campaign has impacted over 250,000 employees and delivered over £1.3bn extra to some of the lowest paid workers in the UK.