Highland Council members to consider next steps towards achieving “Living Wage” designation status for the Highland Council Area

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Elected members of Highland Council, when they formally meet tomorrow (Thursday, 13 May), are due to consider the next steps which the organisation should undertake in order to progress its goal of achieving “Living Wage” designation status for the Highland Council Area.  Attaining this designation is designed to provide benefit and support for lower paid workers, while improving the reputation of businesses and the region.

It is intended to reflect the cost of living and the Council introduced paying the Scottish Living Wage to its workforce during October 2012.

The Scottish Living Wage is independently calculated annually by the Resolution Foundation and is based upon the analysis of the wage that employees need to earn in order to afford a range of goods that are considered required for a decent standard of living. This includes housing, childcare, transport and heating costs. At present it is £9.50 per hour.

One of the key benefits of the living wage is to have a direct positive impact on the wages of those on the lowest income. It should therefore positively benefit those in employment but who are affected by in-work poverty.

Within Highland, average incomes are lower than the Scottish average, largely influenced by the dominant tourism and catering industries which are traditionally lower paid.

Paying the living wage is reported to be good for business with employers making savings on staff retention and recruitment, reporting increased morale and motivation and increased productivity. However, there are also clear societal benefits of paying the living wage; increasing the wages of the lowest employees will help to reduce the level of in-work poverty.  Between 2017-20, 61% of working adults considered to be in relative poverty (after housing cots) in Scotland, lived in a household where at least one adult was in paid employment.

On Thursday, elected members will consider what Highland Council can learn from elsewhere in Scotland.  Convener of Highland Council, Councillor Bill Lobban, explained:  “Back in 2019, Dundee City Council launched a bid to become the first ‘living wage city’ in the UK. They successfully worked in partnership with Living Wage Scotland, along with a group of major local employers and went on publish an action plan to encourage other companies to sign up.

He continued:  “In moving this initiative forward within Highland, we understand that close engagement with Dundee City Council and Living Wage Scotland will be key in order to gain insight into their experiences and to identify the opportunities and challenges in achieving Living Wage area status.”

ENDS

12 May 2021