Living Wage Campaign to Expand in London: New Initiative on Horizon
The Living Wage Foundation has announced plans for a second phase of its initiative, “Making London Work for All” (MLWfA), aimed at boosting living standards across the capital. Following the success of its earlier programme, “Making London a Living Wage City,” the new project seeks to further increase the number of accredited employers, enhance wages for thousands of residents, and tackle in-work poverty.
Current Progress and Achievements
Launched in September 2021 and initially set for a three-year duration, the MLLWC initiative aimed to elevate the status of living wages in London by:
- Adding more accredited employers to the living wage scheme
- Increasing earnings for 50,000 Londoners
- Expanding the workforce of accredited employers by 250,000 people
By 2025, additional funding was secured, allowing for stretch targets to be set for the initiative. So far, the programme has made significant strides, delivering the London Living Wage to approximately 58,000 individuals, resulting in a wage rise of £345 million, with projections estimating this could rise to £2.8 billion by 2030. Furthermore, the number of accredited living wage employers in the city has doubled from 2,000 to 4,000, with notable increases in various key sectors.
Sector-Specific Impact
The impact of the MLLWC initiative is evident in several sectors:
- 80% of NHS Trusts in London now adhere to living wage standards
- 88% more accreditations have been recorded in the creative and cultural industries
Analysis from Cardiff University Business School indicates a remarkable growth in accreditation trends across various industries during a challenging period marked by the pandemic and rising operational costs:
- 159% increase in overall industry accreditations
- 255% rise in the creative sector
- 269% growth in hospitality
- 287% in health and social care
Future Objectives of the New Initiative
The proposed MLWfA aims to build on this success by achieving the following:
- Growing the number of living wage employers from 4,000 to 6,400, thereby lifting wages for an additional 40,000 London residents
- Extending Living Wage Places into new areas such as Old Oak and Park Royal
- Doubling the annual accreditations for Living Hours and Living Pensions, which promote job security and fair pensions, respectively
In addition to these goals, the initiative plans to innovate in areas such as community organisation, specifically through the development of Equity Zones that address a range of social issues, including low wages and housing. New Worker Centres are also proposed to offer support and resources to low-income Londoners.
Funding and Consensus
The Living Wage Foundation is currently gathering a coalition of partners to support this ambitious initiative, seeking an annual budget of £750,000 over the next four years, amounting to a total of £3 million—down from the current budget of £4.8 million. The Greater London Authority (GLA) is asked to contribute £87,500 for the financial year 2025-26.
This funding would originate from the Economic Fairness programme, designed to combat in-work poverty through fair remuneration. The GLA’s commitment to this project could include supporting related objectives such as accrediting its functional bodies to Living Hours and integrating fair pay principles into its planning and procurement processes.
Conclusion
The initiative has received preliminary approval from the Supporting Londoners to Benefit from Growth Programme Board, marking a significant step towards realising these funding plans. Final approval will require adherence to standard budget-setting processes and further decisions by GLA officials.
Source: official statements, news agencies, and public reports.
https://www.london.gov.uk/dd2777-approval-grant-funding-agreement-living-wage-foundation-making-london-work-all
