Council pays Real Living Wage to employees

More than 800 staff will get the extra money as part of the council’s intention to ensure all its staff get decent pay.

Employees that will be eligible include school cooks, domestics, cleaners, and nursery assistants. The new rate is £12 an hour outside of London and £13.15 in London as recently announced by the Living Wage Foundation.

The council is working with partners in the city, who pay the Real Living Wage, to encourage more employers to sign up to paying it as the council seeks to make Newcastle a Real Living Wage City.

Cabinet member for Resources, Cllr Paul Frew, said: “We are absolutely committed to making Newcastle a Real Living Wage City and set a new standard for work in the city. 

“More and more people are struggling to make ends meet paying utility bills and for food so it is only right that we do everything we can to help our employees who do critical roles in these tough times.

“Research suggests that when you pay your staff the Real Living Wage, they tend to spend it locally so it good for the local economy. It makes the local economy more resilient and makes it easier for employers who pay it to attract and retain staff which also makes good business sense.”

Currently 170 employers in the city pay their staff the Real Living Wage – that equates to more than 50,000 employers but the council has wants this to rise to 75,000 in the next year as more organisations sign-up.

In all 837 staff directly employed by the council will benefit from the rise which will add £292,430 to the council’s pay bill along with 41 staff at Your Homes Newcastle which manages the council’s housing stock, though this is not paid by the local authority.

Paul Gilroy, Branch Secretary of UNISON said: "UNISON Newcastle City Branch acknowledges the work that Newcastle City Council is doing to help eradicate low pay in the city by being an accredited Foundation Living Wage Employer.

“As one of the largest employers in the city, this sets a positive example that an employer can increase the wages of its lowest paid staff each year to ensure they can afford to meet their everyday needs, not just survive”. 

Last year Newcastle City Council was given accreditation as a Real Living Wage Employer by the Living Wage Foundation.

Others in the city who pay the supplement include Newcastle United FC, Newcastle University, the North of Tyne Combined Authority, Citizens Advice Newcastle, the mental health trust, Newcastle Building Society and Meat:Stack among others.

The Council and its partners have formed an action group that will set out a three-year plan to encourage more employers to sign up to paying the Real Living Wage.