Preston is now a 'living wage city' - here’s what it means
Preston has been named a ‘living wage city’ in recognition of efforts to boost the incomes of its lowest-paid workers.
A quarter of employees in the city who are at the bottom of the pay scale have now received a wage increase, as a result of their place of work becoming an accredited ‘real living wage’ employer.
It comes 12 years after Preston City Council became the first local authority in the North of England to achieve that status. Since then, the council has been encouraging local businesses to follow its lead.
The success of that campaign was marked at a recent event at the town hall when the accolade of living wage city was formally bestowed on Preston.
The real living wage aims to ensure workers are paid a salary that reflects the actual cost of living. It is set by the Living Wage Foundation and is currently voluntarily adopted by more than 15,000 British businesses.
At the moment, the real living wage is £12.60 per hour for all 18-year-old employees outside of London. That compares to the legally-enforceable minimum wage set by the government, which currently stands at £11.44 for the over-21s - set to rise to £12.21 next April - and £8.60 for 16-21-year-olds.
The town hall gathering brought together employers including Michael Manley from GLL, John Chesworth from Harrison Drury Solicitors and the city council itself to share their first-hand experience of the benefits of being accredited for paying the real living wage.
Kath O’Flaherty, head of workforce at Preston City Council, said: “The living wage agenda is intended to promote the economic and social wellbeing of people living and working in Preston.
“The council has a long history of action on low pay and has been paying the real living wage as the minimum rate for all its workers since 2009. Although it impacts only a small number of workers in roles at the lowest end of the council’s pay spine, it does help to attract workers and reduce turnover in those roles.
“In particular, we’ve had an excellent response in recruiting younger workers into apprenticeship roles,” Kath explained.
Coun Valerie Wise, cabinet member for community wealth building added: “It was a wonderful event and a great platform to promote not only the fact that Preston City Council is an accredited living wage employer, but also Preston’s living wage city status.
“We would love for other employers and councils to follow suit. As proven by conversations with both employers and employees, staff morale and retention improve significantly in businesses paying the real living wage.”