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East Midlands Chamber News

DNCC's Position on the Living Wage

CC BY SA 2.0 The All-Nite ImagesMedia reports this week suggested that some 30,000 UK workers will benefit from an increase in the voluntary "Living Wage".

The Living Wage, which is not binding on employers, was increased by 20p to £7.65 an hour yesterday. It is much higher than the legal UK minimum wage of £6.31 an hour.

The Living Wage is set independently each year, based on the basic cost of living in the UK.

DNCC's position on the Living Wage is as follows:

"For most businesses, their staff are their most important asset and paying a fair wage is an important part of their overall recruitment policy.

"As such, many employers support the idea of a Living Wage and recognise the benefits it brings to their organisation, such as staff retention, increased morale and an improved corporate reputation, along with the knock-on effects to the wider economy in terms of putting more money into people's pockets and boosting consumer spend.

"However, decisions about whether or not to pay the Living Wage should be left with employers to make based upon their individual circumstances, rather than enforced, as there is a danger that forcing businesses to pay above market rates, especially if they cannot afford to do so, could lead to a less competitive economy."

Last night, DNCC Chief Executive George Cowcher discussed the issue with presenter Dominic Heale on BBC East Midlands Today: