Rates discount offered to local firms
Ealing is one of only five London authorities to offer a business rate discount to firms paying the Living Wage.
The Living Wage is a voluntary higher rate of base pay and accredited employers commit to ensuring their lowest paid staff receive the London Living Wage as a minimum. It is currently £9.40 an hour which is £2.70 more than the national statutory minimum wage, reflecting the fact that Londoners face far higher living costs than people in other regions, especially for housing and childcare.
Ealing Council became a Living Wage Employer in 2013 and now it wants other local businesses to become responsible employers by joining the scheme. As an incentive the council is intending to offer a one-off business rate discount - equivalent to two years of Living Wage Accreditation fees - for the first 100 businesses that come forward. The cost of being accredited varies depending on the size of workforce and the type of organisation, but the maximum discount could be up to £2,000 per business.
Employers in the borough who have Living Wage Foundation accreditation include, Ealing Council, PAG Leisure Wear, Cromwell Clean Ltd, The Fresh Olive Company Ltd, Mind Ealing and Hounslow, Post and Packaging (Acton) Ltd.
The Reverend Dr Simon Cuff, Christ the Saviour Church, Ealing and West London Citizens, said: “We are delighted that the council is supporting local businesses to implement the Living Wage.
“The Living Wage is calculated according to the cost of living and takes into consideration things like the high cost of rent in London. It’s good for business and it’s good for communities; in-work poverty is a shocking problem that too many local people have to contend with. No hard working families should be forced to choose between heating and eating but all too often that’s what’s happening. The Living Wage rewards a hard day’s work with a fair day’s pay.”
Since announcing the scheme in September 2015 four new employers have come forward to seek accreditation with the Living Wage Foundation.
Councillor Julian Bell, leader of the council said: “We are delighted that four new employers have been accredited in the last few months and hope that more will follow their example. We are determined to make Ealing a fairer and more prosperous borough and so we want all of our residents to be paid a decent wage. We also want this to be a great place to run a business, so we are doing our bit to help by offsetting the cost of accreditation. I am very encouraged that we have already had several expressions of interest from local firms.
The scheme will start on 1 April and is open to employers who are already accredited, as well as employers who become accredited during the 2016/17 financial year.
According to the London Poverty Profile, published by the Trust for London, more than 25% of the jobs in Ealing are low paid, contributing to levels of in-work poverty, and child poverty.
Councillor Steve Hynes, cabinet member for prosperity, skills and employment, said: “By paying staff a living wage businesses are showing their commitment to fair pay. Research shows that in return for fair pay, people are more productive, take fewer sick days and are more likely to work at a company for longer. It is also good for the reputation of the business and can attract customers and prospective staff.
“As the council's Living Wage champion, I look forward to working with West London Citizens and the Living Wage Foundation to promote accreditation in Ealing. I would encourage businesses who are interested in gaining accreditation to come forward so that we can recognise their commitment to becoming a fair pay employer.”
Businesses who wish to find out more about the scheme should contact the council by emailing revenues@ealing.gov.uk.
Sarah Vero, director, Living Wage Foundation said: “We very much welcome the leadership Ealing Council is showing in promoting the Living Wage to businesses across the borough. The Living Wage goes above and beyond statutory minimums, including the new minimum wage premium for over 25s, rewarding staff with a pay rate based on the real cost of living.
“There are now more than 2,000 accredited Living Wage employers across the UK ranging from household names like Nationwide and Unilever, to independent bookshops, breweries and hairdressers. We look forward to working with Ealing based businesses to help them accredit.”
Further information about the council’s scheme is available on online at www.ealing.gov.uk/livingwage
17th February 2016