Fair Pay: Making the London Living Wage the norm

The London Assembly's Economy Committee has investigated the extent and drivers for low pay in the capital, including how persistent the problem is and the effect it has on London’s economy.

The Committee has published its findings in its ‘Fair Pay: Making the London Living Wage the norm’ report and provided recommendations to the Mayor, London boroughs and the Living Wage Foundation to boost the voluntary uptake of the London living wage, particularly in the capital’s lowest paying sectors.

The Vision 2020 report highlights the Mayor’s ambition to make the London Living Wage ‘the norm’ by 2020.

The London Living Wage represents what the Greater London Authority assesses as the minimum wage needed to meet basic living expenses in the capital (currently £8.80 an hour).

There are an estimated 750,000 Londoners earning less than the London Living Wage (currently £8.80). The majority are women and the majority work part-time.

Tackling low pay would have a positive impact not only on individuals and their families, but also London’s employers and wider economy. Higher wages mean not only a more loyal and productive workforce, leading to higher productivity, but also higher consumer spending and therefore wider economic growth.

The following recommendations are some of those outlined in the Economy Committee’s Fair Pay report.

The Mayor should continue to promote a Living Wage procurement standard and emphasise the positive impact that Living Wage procurement would have on social care workers across the capital.

London boroughs seeking Living Wage accreditation should set a clear start date for staged implementation for social care workers, including contracted services.

The Mayor and the Living Wage Foundation should jointly develop a cohort of 20 employer champions across low-paying sectors. These champions would advocate the Living Wage to their respective sectors.

The Mayor should ensure Mayor's Office for Policing And Crime (MOPAC) and the Metropolitan Police Service adhere to the commitment to become fully Living Wage compliant by January 2016.

The London Enterprise Panel should take a lead in increasing the skills of London’s low-paid workers.

The Mayor should emphasise the positive impact that Living Wage procurement would have, particularly on social care workers across the capital.

The Mayor should further promote the Living Wage via procurement, investment and other commercial decisions.

In the video below Stephen Knight, Chair of the Economy Committee gives an overview of the Fair Pay: Making the London Living Wage report.

GLA Economy has released its 'Low Pay in London' report which investigates the issues of low pay within the capital and provides an analysis of statistics requested by the London Assembly Economy Committee as part of its low pay investigation.

The Economy Committee has now received responses to the report from the Government, the Mayor of London and the Living Wage Foundation.