OF BUSINESS AND MANAGEMENT
We are pleased to announce that as-of April 2016 London School of Business and Management (LSBM) has been accredited as a Living Wage employer by the Living Wage Foundation.
The Living Wage commitment will see everyone working at LSBM, regardless of whether they are permanent employees or third-party contractors; receive a minimum hourly wage of £9.75. This is significantly higher than the national minimum wage of £6.70, and the new minimum wage premium for over 25s of £7.20 per hour, that was introduced in April 2016.
The Living Wage is an hourly rate set independently and updated annually.
The Living Wage is calculated according to the basic cost of living using the ‘Minimum Income Standard’ for the UK. Decisions about what to include in this standard are set by the public; it is a social consensus about what people need to make ends meet.
John Fairhurst, Managing Director and Academic Principal at the London School of Business and Management has chosen to embrace the philosophy of paying people a living wage, which will see employees at LSBM earning £3.05 above the new minimum wage, and £2.55 above the 'premium' minimum wage for the over 25s that has been introduced by the government.
Living Wage Foundation Director, Katherine Chapman said: “We are delighted to welcome London School of Business and Management to the Living Wage movement as an accredited employer."
“The best employers are voluntarily signing up to pay the Living Wage now. The Living Wage is a robust calculation that reflects the real cost of living, rewarding a hard day’s work with a fair day’s pay."
“We have accredited over 2,300 leading employers, including leading higher education academic institutions such as LSBM. This has ranged from independent printers, bookshops and breweries, to well-known companies such as Nationwide, Aviva and SSE. These businesses recognise that clinging to the national minimum wage is not good for business. Customers expect better than that." - Living Wage Foundation
About the Living Wage
The Living Wage is an hourly rate set independently and updated annually. The Living Wage is calculated according to the basic cost of living in the UK. Employers choose to pay the Living Wage on a voluntary basis. The Living Wage enjoys cross-party support.
The London Living Wage is currently £9.75 per hour in London. This figure is set annually by the Greater London Authority and covers all boroughs in Greater London. The UK Living Wage for outside of London is currently £8.45 per hour. This figure is set annually by the Centre for Research in Social Policy at Loughborough University.
The latest figures were announced on 31 Oct 2016 by London Mayor Sadiq Khan, and LSBM is pleased to be able to implement them immediately.
The Living Wage Foundation recognises and celebrates the leadership shown by Living Wage employers across the UK. There are currently over 2,300 accredited employers of which LSBM is proud to be one.
To get this number in some kind of context, it is interesting to note that UK Government statistics show that there are over 6,500 companies in the UK that each employ over 250 employees, 31,000 that employ between 50 and 249 employees, and over a million other private sector businesses that employ between 1 and 49 employees. So the 2,300 or so that have chosen to pay the Living Wage are in a select and special group of companies that have pro-actively decided to take practical action on helping their staff, rather than just talking about it.
The Living Wage Foundation receive guidance and advice from the Living Wage Advisory Council. The Foundation is supported by ten principal partners: Aviva; Joseph Rowntree Foundation; KPMG; Linklaters; Nationwide; Nestle; Resolution Foundation; Save the Children; Trust for London; and Queen Mary University of London.
What about the Government’s national living wage?
In July 2015 the Chancellor of the Exchequer announced that the UK Government would introduce a compulsory ‘national living wage’. This new government rate is a minimum wage premium rate for staff over 25 years old. It was introduced from April 2016 and the rate was set at £7.20 per hour. The rate is separate to the Living Wage rate calculated by the Living Wage Foundation. The government rate is based on median earnings while the Living Wage Foundation rate is calculated according to the cost of living.
The National Minimum Wage
(including the ‘national living wage’)
The Living Wage
The legal minimum an employee can earn in an hour. Employers break the law if they fail to pay this rate.
A voluntary rate that employers commit to pay in order to go above and beyond. The Living Wage Employer Mark is a sign of best practice.
The ‘national living wage’ rate will be £7.20 an hour.
The current UK Living Wage is £8.45 an hour.
The current London Living Wage is £9.75 an hour.
This will increase each year, with the aim of reaching 60% of the median wage across the country by 2020 (this would mean around £9 an hour but the Low Pay Commission will consider what the market can bear).
This will increase in line with the cost of living with increases announced in Living Wage Week every year. (The latest figures above were announced on 31 Oct 2016)
Different rates apply depending on the age of the employee. The ‘national living wage’ is for over 25s only.
The Living Wage is the same for all employees over the age of 18.
Set by the Low Pay Commission.
Set by the Living Wage Foundation.
Based on an estimation of what the market can bear.
Based on the cost of living.
The rates are the same right across the UK.
There is a separate rate for London to reflect the higher cost of living in the Capital.
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