“good for business, good for the individual and good for society” (The Living Wage Foundation, 2014)
What is it?
Updated annually, independently set and calculated on the current cost of living, the Living Wage for the UK is £7.65 per hour (£8.80 in London).* Though it has cross-party support, it remains voluntary – employers are not obliged to pay it.
By contrast, the current minimum wage (which employers are obliged to pay) is £6.31, and for 18-24 year olds, £5.03. For Baked employees, that is a whopping £2.62 difference in pay per hour.
Of course, many employers already pay above the Living Wage, but many do not, with accountancy firm KPMG finding that nearly 20% of all workers in the UK receive less than this threshold.*
Basically, it is the level at which employees can afford to live a decent life. And we’re not talking champagne and caviar here.
How did it come about?
The Living Wage campaign began life in 2001 by a group of parents in East London who were frustrated that after working two minimum wage jobs there was no time left for family life.*
Gathering support for it began slow but with the issue of low pay increasing over the past few years the Living Wage Foundation is now heavily promoting the campaign. Since 2008, the combined effect of the recession, high unemployment, static wage levels and high inflation levels has depressed annual income per person by 13%.**
This has left many individuals and families facing difficulties and while the causes of poverty are complex, commitment to the Living Wage can contribute to addressing it.*
What does it mean for Baked and our employees?
For employees, well seeing that the living wage is calculated on the current cost of living, well they can afford to live and provide for themselves and their families. Seems fair right?
This is why Baked is committed to paying all of our employees at least this figure.
Want to find out more?