More ‘real’ living wage employers in Oldham

The Living Wage Foundation encourages employers to sign up to pay a "real" living wage, which is higher than the minimum wage and pegged to living costs.

The rate, which is calculated by a group of economists and applies to employees aged 18 and over, currently stands at £9.90 per hour across the UK and £11.05 in London, to reflect higher prices in the capital.

For comparison, the Government’s ‘national living wage,’ which replaced the ‘national minimum wage’ for those aged over 23, stands at £9.50 per hour.

The minimum wage for those aged 21 to 22 stands at £9.18 per hour, and falls to just £6.83 for people aged 18 to 20.

Figures show there were 27 accredited real living wage employers in Oldham as of the start of July – up from 19 at the same point last year and five in 2017.

The soaring cost of fuel, energy and food has put wages under the spotlight, with food bank usage in Oldham increasing.

Workers in some industries have gone on strike this summer, asking for a better deal from their employers.

Katherine Chapman, director of the Living Wage Foundation, said the cost-of-living crisis has made increasing wages for the low-paid ‘more important than ever.’

She said paying the living wage is not only “the right thing to do for struggling workers and families, but it’s also good for businesses, with employers benefitting from greater staff morale and productivity, and reduced staff absenteeism and turnover.”

The foundation announced in May that 10,000 employers had signed up to the scheme – covering nearly 350,000 workers, or around one in 13 employees in the UK.

As of July 1, there were 10,765 organisations paying the real living wage across the UK, up from 8,107 in 2021 and 3,383 in 2017.

Researchers at Cardiff University estimate this has provided an extra £1.8bn to low-paid staff.

Oldham Council is one of the accredited employers in Oldham – alongside multiple retail banks such as Santander, charity shops such as Oxfam, charities like Positive Steps, and Oldham College.

Cllr Amanda Chadderton, leader of Oldham Council, said: “I am delighted to hear the news that more employers across our borough have joined us in paying their employees the real living wage.

“At a time where we are all seeing less value for our money because of soaring inflation, it’s more important than ever for employers to support their lowest paid workers.

Cllr Amanda Chadderton

“The cost-of-living crisis is impacting everyone but is disproportionately affecting lower-paid workers the most, and we cannot stand by and do nothing so I encourage more local employers to do the same and pay the real living wage.”

Across the North West, there are 985 real living wage employers, an increase from 273 in 2017.

Despite this, many UK workers are still on low pay.

The Office for National Statistics estimated that in April 2021 nearly 300,000 employees were paid below the Government's living or minimum wage, excluding those furloughed at the time, with service workers particularly likely to suffer low pay.

The latest estimates from the Bank of England suggest inflation could hit 13 per cent in the fourth quarter of this year.

The Trades Union Congress, a federation of workers' groups, said recently that this would result in an unprecedented drop in pay in real terms, with wages expected to rise by 5.3 per cent over the same period.

A spokesperson for the Department of Business, Energy and Industrial Strategy said the Government is "determined to make work pay".

They added: "We know the pressures people are facing with rising costs, which is why we have continually taken action to help households by phasing in £37 billion worth of support.

“In the long-term, we are committed to building a high skilled, high wage economy that delivers on our ambition to make the UK the best place in the world to work.”