November marks Cambridge City Council’s 10th anniversary as an accredited Living Wage Employer, meaning council staff have been guaranteed to earn at least the ‘real Living Wage’ since 2014.

The real Living Wage is calculated annually by the Resolution Foundation and overseen by the Living Wage Commission, to reflect the costs of a core basket of goods and services that people in the UK feel are necessary to meet everyday needs.

There are now over 70 employers in Cambridge accredited with the Living Wage Foundation, and 110 in the Greater Cambridge area. This means that within Cambridge nearly 26,000 people are employed by an accredited Living Wage Employer.

Last year’s figures reveal that since 2014, the number of people paid below the real Living Wage in Cambridge has halved. However, this means there are still 7,000 people employed in positions which do not pay enough to meet their everyday needs.

Announced on 23 October, the real Living Wage rate increased to £12.60 across the UK, with a higher rate of £13.85 for people working in London to reflect higher living costs in the capital.

On Wednesday (30 October) the government announced its new statutory minimum wage rates and National Living Wage rate which will come into effect from April 2025. The new minimum wage rates are £7.55 for 16 and 17 year olds, increasing from £6.40, and £10 for 18 and 19 year olds, increasing from £8.60. The new National Living Wage rate for workers aged 21 and over will be £12.21.

The real Living Wage applies to all workers over the age of 18 working for a Living Wage employer and it is a higher, voluntary rate that is independently calculated based solely on the actual cost of living. It is different to the government’s minimum wage rates which are the legal minimum businesses are required to pay by law. The new real Living Wage rates are now worth over £2,262 more per year in the UK than the current legal minimum, and over £4,700 more in London.

Cllr Alice Gilderdale, Executive Councillor for Economy and Skills, said: “As a council we remain committed to ensuring all staff are paid at least the ‘real Living Wage’ of £12.60 and will be taking this commitment forward into our 11th year as a real Living Wage employer.

“We are incredibly proud of our long-standing commitment to paying our own staff a real Living Wage over the last decade, as well as working to encourage and support more local employers to do the same.  

“Choosing to become an accredited real Living Wage employer is good for business, good for workers, and good for our city. As an employer, it demonstrates your commitment to fair pay and to doing right by your employees and acknowledges how raising standards in pay improves recruitment, retention, and motivation.

“Over the years campaigning for other local organisations to pay the real Living Wage has included marking Living Wage Week with events for employers, attending employer networking events, and running events to help raise awareness of the implications and benefits of accreditation for different sectors. We have met with employers considering accreditation to provide one-to-one advice on the accreditation process and the benefits that accreditation has to them. We have also undertaken publicity campaigns to raise awareness of the importance of the real Living Wage.  

“The increase announced by the government to the national minimum wages and National Living Wage this week is something we welcome. The new National Living Wage rate of £12.21 for over 21s has now been calculated for the first time to take living costs into account; and the increase in the rate of pay for 18 to 20 year olds narrows the gap between that and the National Living Wage, in anticipation of the National Living Wage rate being extended from over 21s to over 18s in the years ahead.”