Living wage for Lancashire County Council workers

Proposals were drawn up to increase the rate of pay to the newly-announced figure of £7.65 per hour, which would affect upwards of 3,600 County Hall workers.

The ‘living wage’ is set by the Centre for Research in Social Policy at Loughborough University and is designed to reflect the level of income required decent standards of health and social inclusion.

But the national minimum wage, devised by government, is just £5.03 for 18 to 20-year-olds and £6.31 for over 21s.

It is estimated that only 3.4 per cent of full-time county employees fall below the living wage threshold - but 45.1 per cent of part-time employees are affected.

Jo Turton, the county council’s interim chief executive, said in a report: “There is evidence that the benefits of becoming a ‘Living Wage Employer’ can include: improved recruitment and retention, higher employee morale; motivation and productivity.”

The county council’s cabinet yesterday agreed to the measure, which would mean scrapping a number of lower level pay grades.

This will be done in two phases, with those on the two lowest rates equalised to a £6.69 per hour settlement.

And then from the start of April next year these two grades, along with the next four, would be improved to the £7.65 per hour figure.

Councillors have been told that the first phase of the exercise would cost the authority at least £173,000, with the second tranche coming in at around £3million.

Around 5,200 schools staff, including dinner ladies and kitchen workers, would benefit from adopting the wage - but each individual governing body would have to decide to enlist.

Hyndburn borough council adopted the living wage in 2011 and all its permanent staff are now on or above it.

Ribble Valley is monitoring its pay levels but only a handful of its workers receive below it.

Blackburn with Darwen council is committed to bringing in the living wage and so far 85 per cent of its employees receive it or more.