Let’s tackle deprivation – plans to make sure everyone earns a decent wage unveiled

Faster economic growth than the national average and tackling deprivation are at the heart of our Let’s Do It community strategy.

Bury Council has led the development of the 10-year vision for the borough, supported by many of our partners.

The council is also one of the largest employers in the area and in support of this vision, is looking to invest more than £5m over five years to become a real living wage employer.

A report to the council’s Cabinet, to be discussed next week, sets out how we will pay our lowest paid staff, most of whom live in the borough, at least the value of the Real Living Wage, which is currently £9.50 per hour.

The council will also be working with other employers in the borough across public and private sectors to encourage them to do the same.

The Real Living Wage is independently set and calculated according to the cost of living, based on a basket of goods.

It is higher than the National Minimum Wage and National Living Wage because it is based on what it costs to live.

If the council adopts the Real Living Wage, then around 4000 staff who are either directly employed by the council including authority employees in schools, those who work for organisations commissioned by the council to provide services, and agency staff will benefit. Around 3000 work in adult social care for organisations commissioned by the council.

The proposals will see rates of pay rise for staff in council (and schools) grades 1 to 4, some to above the Real Living Wage rate to retain pay differentials. This will be backdated to April 2021. For those in commissioned services the council has developed a plan to ensure payment over three years.

Councillor Eamon O’Brien, Leader of the Council explained that adopting the Real Living Wage was part of the authority’s commitment within the Let’s Do It Strategy to reduce poverty in the borough.

“Payment of the Real Living Wage will play an important part in supporting many of our residents and research shows that payment of the Living Wage could increase the income of a two-person household by up to £5,000 a year.

“As a major employer in the borough we are taking the lead in demonstrating a socially responsible position. We will also be recommending the payment to our partners, other schools, and other employers in the borough.

“When workers earn enough to live, they have more income to spend in the local economy. Adopting the Real Living Wage means we will be supporting the financial stability of 4,000 people and protecting them from in-work poverty.

“It also demonstrates our commitment to the Greater Manchester Good Employment Charter and the pledge that we will become the UK’s first Living Wage City-Region.”

Councillor Tahir Rafiq, Cabinet Member for Corporate Affairs and HR added: “As well as supporting thousands of our residents, adopting the Real Living Wage is good for organisations.

“Research by the Real Living Wage Foundation shows that organisations who bring it in keep more of their staff who are better motivated and work harder for their employers.

“They are able to recruit more staff. People see they pay the Real Living Wage and are attracted to work for those organisations.

“It’s not only good for staff but also the organisations who pay them. It’s why we’re recommending other employers across the borough adopt it.”

Most of the commissioned staff who benefit provide adult social care for some of the most vulnerable in our borough.

Councillor Andrea Simpson is the Cabinet Member for Health and Wellbeing and she explained: “Adult social care staff perform some of the most critical work in our society and especially during the pandemic have helped our most vulnerable.

“We commission a large number of organisations to provide care either in care homes or in their own homes. It is hard, exhausting and emotional work and it is only fair that they receive enough to live on.

“Without these unsung heroes many of our most vulnerable would have nowhere to turn to.”

The Real Living Wage report will be discussed by the council’s Cabinet on Wednesday 1 September, and if approved would see payment begin in October. It will apply to organisations who provide services to the council but does not apply to contractors that supply the organisation with products, for example stationery suppliers.

The report will be discussed at the Cabinet meeting on Wednesday 1 September and can be found here: https://councildecisions.bury.gov.uk/documents/s28153/Real%20Living%20Wage%20Implementation.pdf