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Living Wage - article for TULO
15/Jun/2010
It was a scandal that in 1997 jobs were still advertised for as little as £1 an hour. Labour's rising National Minimum Wage and tax credits improved living standards for low-paid workers and narrowed the pay gap for women whilst avoiding job losses.
But low pay is still a problem - and we need to recognise that higher living costs in some parts of the country, particularly in London and the south, mean the minimum wage and tax credits are having a reduced impact there.
Ken Livingstone instituted the London Living Wage, responding to calls from unions and London Citizens to recognise the higher cost of living in London.
If campaigns for a living wage are to be successful then we have to set the example and show leadership ourselves, as Ken did when he was Mayor.
I did not just talk the talk - I was the one and only Cabinet minister to introduce the Living Wage within my own government department for all staff and contracted staff.
But a living wage cannot be implemented in isolation. Our plan must be to:
- Raise the National Minimum Wage every year at least in line with average
earnings.
- Follow Ken Livingstone’s example by having the Low Pay Commission properly assess the level of a Living Wage.
- Reflect different family circumstances through child benefit and tax credits. We cannot base a living wage on a 1950s notion of the family.
- Beef up enforcement – I want to see local council and tax inspectors empowered to blow the whistle on employers who evade the legal minimum. There is a strong case for a unified Employment Inspectorate.
- Strengthen laws on agency and posted workers to combat undercutting.
- Ensure low paid workers have access to trade union organisation if they so wish.
- And ensure the public sector leads the way on fair pay, both directly and through procurement.
Now we must reject the Tory counsel of despair and press the case for a living wage.
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