Includability has recently recertified as an accredited Living Wage Employer! This means that every member of staff working for Includability earns a real Living Wage.

We are one of over 11,000 employers across the UK who have proudly committed to pay a real Living Wage to our staff, independently calculated to be enough for employees and their families to live on.

Why did Includability adopt the Real Living Wage?

Includability became a Real Living Wage employer in 2021 because we support the UN Sustainable Development Goals (SDGs) as part of our business model. One of the five goals that are baked into our business plan is Goal 1: No Poverty. We believe all our employees are entitled to a fair wage for fair work, a wage they can live on.

Paying a living wage allows us to retain the majority of the talent we bring into our organisation and where employees feel secure in their jobs.

What is the Real Living Wage?

The Real Living Wage is independently calculated each year based on living costs and accredited employers choose to go further by paying all their staff, including subcontracted staff, a real Living Wage. At the heart of the Living Wage movement is the simple idea that a hard day’s work deserves a fair day’s pay. In 2016 the government introduced a rise in the minimum wage for over 25’s and called this new statutory minimum: The National Living Wage.

For 2022, it is currently calculated at £10.90 per hour and £11.95 per hour in London where living costs are significantly higher.  

Who Calculates the Real Living Wage?

The real Living Wage is higher than the government’s minimum living wage, it is calculated each year and is announced by the Living Wage Foundation as part of Living Wage Week every November.

There is still a gap between the amount all employers have to pay by law and the Real Living Wage that meets the cost of living. That’s why thousands of UK employers have voluntarily committed to going further -because it’s fair.

How is the Real Living Wage Calculated?

There are a number of factors which can lead to changes in the rates each year:

• Changes in the prices of goods and services

• Changes to the tax and benefits system (which affects the relationship between pay and income)

• Changes in the basket of goods and services which constitute the Minimum Income Standard (MIS) the calculation is based on

• The use of the ‘shock absorber’ in years when the underlying rates are subject to significant change

The increase in the rates for 2022-23, compared to the 2021-22 rates, are 90p (+8.1%) and £1.00 (+10.1%) in London and the Rest of the UK, respectively. These are larger increases than seen in previous years, mainly reflecting higher inflation this year.

The changes in the rates for 2022-23 were driven by two main factors. First from significant upwards pressure from prices - in particular from energy prices. Second was downwards pressure from changes in the benefits system and from the cash support to households to help with energy costs.

How did The Living Wage Foundation start?

The campaign for a Living Wage has cross party-political support and is a movement of independent businesses, organisations and citizens who believe a fair day’s work deserves a fair day’s pay.  

It was started by Citizens UK - the national home of community organising, in 2001. Together with communities and activists across the country we have been campaigning since - to ensure that everyone can earn a real Living Wage that meets living costs, not just the government minimum. 

It engaged in a series of Living Wage campaigns and in 2005 the Greater London Authority established the Living Wage Unit to calculate the London Living Wage. The London Living Wage was developed in 2008 when Trust for London awarded a grant of over £1 million for campaigning, research and an employer accreditation scheme. The Living Wage campaign subsequently grew into a national movement with local campaigns across the UK. In 2011, the basis for developing a standard model for setting the UK Living Wage was established for outside of London and the UK wide Living Wage Foundation was founded.

During the ten years of establishing itself, the Living Wage campaign gained political support from successive London Mayors, MPs and the Scottish Government – Helping to grow the movement across the four nations of the UK.

Although political bodies have supported and championed The Living Wage Foundation, it remains independent from political influence.

Does Includability encourage others to become Real Living Wage employers?

Includability exists to affect real change in the workplace. Our business is a community network where we require organisations that wish to join us as Includability Committed Employers, or Includability Committed Educational Settings undergo a 5 Star Verification Process in which discussing best practice on employee wellbeing - including financial wellbeing – is a significant part of the process.

Paying the Real Living Wage to all staff is encouraged during these discussions and will eventually become a requirement as organisations re-verify with us as they must show improvement each year they wish to commit.

As a purpose-driven business, we also encourage our wider community members, Official Partners and service providers to become Real Living Wage employers to maximise our impact so that everyone can prosper.

Why does Includability continue to support The Living Wage Foundation?

The Real Living Wage will continue to be calculated independently each year.

The Living Wage Foundation is currently recognised as the independent authority on what is considered to be a living wage in the UK. It is backed by private sector companies, public sector bodies, NGOs, charities, and local authorities.

The foundation is built on trust to do right for the people it serves and this is why Includability will continue to support The Living Wage Foundation.