Preston Living Wage

What is the Preston Living Wage?

In 2008 we began to look at the implications of being a Living Wage Employer.

In December 2008 Full Council resolved to be a Living Wage employer.

In April 2009 we implemented a policy of paying our staff a Living Wage as well as our contracted staff (i.e. any staff we may employ on an agency basis).

In 2011 we decided to aim to secure the payment of a Living Wage in our procurement processes.

What is paid?

The council have agreed to pay staff the National Living Wage of £7.20 per hour.

Who is a Living Wage paid to?

The council pays a Living Wage to all its employed staff and all staff contracted as agency staff.

Does the Living Wage apply to other employers in the city?

The idea of the Living Wage is to encourage employers across Preston to raise their own rates of pay to at least £7.20 per hour.

Why £7.20 per hour?

This figure is the national Living Wage based on the calculation undertaken by the Centre for Research in Social Policy, Loughborough University. The Living Wage in the UK by David Hirsch (PDF).

How will the figure be calculated in future years?

We are keen to ensure that the Preston Living Wage has a sound basis and we will work with other organisations to ensure future rates have a common foundation.

Will the council award work to contractors who pay the Preston City Council Living Wage?

We recognise that being a Living Wage employer it is essential to widen the impact of the Living Wage policy whilst at the same time working within the current legislative framework to encourage contractors and others to pay the Living Wage. We will actively look it to implement the Living Wage Policy in our procurement practices on a case by case basis.

What are the benefits of paying a Living Wage? Why should I pay my staff a Living Wage?

In addition to the economic and social benefits for Preston’s population, the payment of a Living Wage can have a positive impact on the delivery and services and value for money. Those bodies and companies who have implemented a Living Wage policy have identified potential benefits as :

• Better quality services
• Better productivity/motivation
• Higher quality staff
• Better attendance
• Easier recruitment and retention

For more on the business case for the Living Wage please visit London Citizens Foundation.

What do I need to do to become a Preston Living Wage Employer?

If you can answer yes to these questions:

Am I a business/company who is based and operates in Preston? Yes

and

Do I pay all my staff (excluding interns but including agency/temporary staff/contacted staff) £7.20 per hour? Yes

Then you can register as a Living Wage Employer by completing the Preston Living Wage response form or by contacting the Executive Member of Community Engagement and Inclusion (Councillor Matthew Brown at cllr.m.brown@preston.gov.uk).

Any PLW (Preston Living Wage) employers will be listed on this website and will be able to call themselves a ‘Preston Living Wage Employer’.