Jim McGovern : The Living Wage

11 November 2014

As Living Wage Week drew to a close, Jim McGovern, MP for Dundee West calls for businesses to pay the Living Wage.

Run by the Living Wage Foundation, Living Wage Week ran from the 2nd to the 8th November and was aimed at raising awareness of both the Living Wage and the Living Wage Employer Mark.

Currently 22% of the workforce which is around 5 million people are paid below the Living Wage of £7.85 for the UK and £9.15 for London, contributing to the figure that of the people in poverty in the UK, 7.7 million are in a family that works.

In order to counteract this endemic problem, the next Labour Government will incentivise paying the Living Wage through the use of ‘Make Work Pay’ contracts which means that in return for becoming an accredited Living Wage employer, businesses will receive back 12 months’ worth of the resulting increased tax and National Insurance revenues received by the Government.

Speaking on the Living Wage, Jim McGovern, MP for Dundee West said:

 “The Living Wage Foundation is doing some great work to help publicise the Living Wage and the many benefits that it can bring not only to those who are paid it through lifting them out of poverty and ensuring that they are able to pay their bills with money left to spend, but also to employers who are able to generate savings through increased staff retention, better workforce productivity and increased revenue as more people will have a bigger disposable income on the Living Wage.

“The Living Wage receives widespread support from the unions, charities and businesses of all sizes because of the great benefits that it brings, and I am proud to say that I support this excellent campaign to end the scandal of people not earning enough to live on.

“I therefore urge as many of the organisations in Dundee who can pay their staff a Living Wage to do so to rebalance our economy to make it stronger and fairer from the bottom up, and to fight the poverty that has risen under this Tory/Lib Dem Government.”





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