Living Wage Standard – Key Factor in Ed Miliband`s Campaign

A few days ago, The Legal Stop informed you about The Living Wage Discussions. now they are in the focus of the news again as the Labour leader – Ed Miliband declared that a minimum  living wage of about £7.45 (compared to the current £6.19) will be a key concept for his campaign

Of course, the employers will not be obliged to pay the minimum living wage, however Labour are working on developing strategies, which will encourage them to do so. Plans include government contracts only to firms, paying the living wage standard and the controversial idea of naming and shaming companies, which fail to pay their workers the minimum living wage. The living wage in London and the rest of the country is different , due to the high living costs in London. It would rise to about £8,55 per hour, according to the Labour plans.

“It is about giving people a proper stake in the future of the country,” explained Miliband.“You go out, slog your guts out… you deserve a decent wage if the company can afford it.“We’ve got a growth crisis in Britain, but we’ve also got a living standards crisis because the proceeds of economic growth are not being fairly distributed any more.”

There is a great benefit for the country, if employers pay the minimum living wage, people who work, but still get benefits will increase their income, which will help reduce the number of people, dependant by the state. An independent research by the Fiscal Studies estimated that the government will save £1,00 per year for each person receiving the minimum wage. Some companies have already applied for the for license to bear the Living Wage employer Mark. Up to now, The Living Wage Foundation has accredited almost 100 UK employers with the mark.


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