Andy Bagnall, Director at KPMG UK, comments on the new Living Wage rates announced today by the Living Wage Foundation and the Greater London Authority. He said:
“Today’s announcement will see a significant number of employees that work for a Living Wage accredited business get a pay rise. The increase of just over four percent in London (£9.75 to £10.20) and three percent nationally (£8.45 to £8.75) may seem like small change to some, but for many it’ll make a huge difference to their lives, helping escape in-work poverty.
“The reality is that those at the bottom of the pay scale are really feeling the squeeze due to increases in the cost of living and decline in real pay. Paying a Living Wage will save huge swathes of people being unable to afford the basics they need.
“As employers we can take active steps to address this, by paying the real Living Wage. This also delivers real and tangible business benefits. In our own firm it has improved staff morale and driven a rise in service standards, improved the retention of staff and increased our productivity.
“It may not be possible or practical for everyone, but all organisations need to do what they can to address the problem of low pay. Of course, change cannot happen instantly, but making an initial assessment is an important first step.”
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Notes to Editors:
What is the real Living Wage?
The real Living Wage is an hourly rate of pay set independently and updated annually (not the UK government’s national living wage). It is calculated according to the basic cost of living in the UK, and employers choose to pay the Living Wage on a voluntary basis. According to the Living Wage Foundation, since 2001 the campaign has impacted over 150,000 employees and redistributed over millions of pounds to some of the lowest paid workers in the UK.
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.