Ann-Marie Hopkins 27 July 2015

Pushing the Living Wage further

Last month, the chancellor of the Exchequer announced the Government’s Summer Budget 2015, unveiling policies for a new compulsory Living Wage.

The scheme proposes to raise the minimum wage from £6.50 an hour, to £9 an hour by 2020, with the first increase taking place in April 2016 which will see workers receive an hourly rate of £7.20.

This new legislation is a welcome move for workers across the UK as currently; the Living Wage doesn’t go far enough in meeting the cost of living for all. As a Living Wage employer, we’re pleased to see a movement towards improved pay, with the proposed figures sitting in line with the work Procure Plus has been doing across the North West since its inception.

However, the recent announcement appears to ignore the pressing issue of poorly paid apprentices and trainees. The chancellor’s policy will only apply to people aged 25 and over, leaving many ineligible and on poor pay. These people will receive £3.30 an hour from October, reflecting a mere 57 pence increase in pay.

Apprenticeships and training programmes can’t afford to fall down the Government’s agenda, with a target to create three million apprenticeships by 2020 and skills shortages becoming an ever-increasing problem. There is a risk that young people will be put off these schemes as there is such a low pay offering. More needs to be done to support those people from low income backgrounds, and encourage them to take up the programmes which will ultimately drive the UK economy forward.

As one of Procure Plus’s key objectives is delivering sustainable employment opportunities, we created our own Living Wage Plus scheme to support people who might be deterred from training based roles. Working primarily, but not exclusively, in the construction sector, the scheme tracks the Construction Industry Joint Council apprentice rates, which are currently a minimum of £4.57 an hour for first year trainees and £5.90 for second years or the current National Minimum Wage, whichever is greater.

All of our contractors are encouraged to adopt Living Wage Plus and the Living Wage after training is complete, with approximately 92 per cent of our North West contractors paying these amounts.

Following the latest Budget, it is now more important than ever to focus on the Living Wage and increasing the amount of pay for trainees under the age of 25. Local authorities have a responsibility to provide support to workers, future-proofing the UK economy.

Alongside this, it is vital that businesses adopt schemes offering an improved minimum and Living Wage, supporting the next generation of workers while helping to meet training targets and close the skills gap.

Ann-Marie Hopkins is senior regeneration manager at Procure Plus

SIGN UP
For your free daily news bulletin
Highways jobs

Finance Assistant - Banking, Controls & Reconciliation

Essex County Council
Up to £25081.00 per annum
Finance Assistant - Banking, Controls & Reconciliation Fixed Term, Full Time£25,081 per annumLocation
Recuriter: Essex County Council

Park Operations Assistant

Essex County Council
Up to £25959.00 per annum
Park Operations AssistantPermanent, Part Time£25,959 per annumLocation
Recuriter: Essex County Council

Science Teacher

Durham County Council
£32,916 - £51,048
Science Teacher M1- UPS3 £32,916 - £51,048 Permanent, Full time Required as soon as possible The Woodlands EHN Team is seeking to appoint a qualified Ferryhill
Recuriter: Durham County Council

Hospitality and Catering Instructor

Durham County Council
£27,663 - £37,875 Instructor Scale B
WHAT IS INVOLVED? The team at Aycliffe Secure Centre provide a caring, trauma informed and aspirational environment for young people aged between 10 a Newton Aycliffe
Recuriter: Durham County Council

Lawyer Contracts and Procurement

Durham County Council
£47,181 to £51,356 p.a. (Grade 13)
An exciting opportunity has arisen for a Contracts and Procurement Lawyer to work at Durham County Council as part of the Legal and Democratic Service Durham
Recuriter: Durham County Council
Linkedin Banner