Living Wage for Norwich
Adrian Ramsay | 26 November 2008
In September, the City Council passed a Green Party motion calling for a Living Wage for Norwich workers. The idea is that there should be a minimum level of pay, higher than the minimum wage, that is based on what people need to get by.
In London economists worked this out to be £7.45 per hour, while in Oxford it's £7. The first stage in adopting a Living Wage in Norwich is for the Council's Economic Development department to work out the right level for us. It seems from a question I asked at full Council last night (see below) that this work won't be complete until the New Year but when it is ready I hope the Labour administration will stick to its promise of securing this higher level of minimum pay for all Council workers (including those working for contractors) and then persuading businesses and other employers in the city to do the same, as is working well in London.
Councillor Adrian Ramsay to the Executive Member for Corporate Resources and Governance:-
‘What progress has the Executive made in promoting a Living Wage for the city? I believe the next stage in the process is for a study to be conducted to establish the hourly rate of pay for a Living Wage in Norwich. When will this study be completed?’
Councillor Alan Waters, Executive Member for Corporate Resources and Governance’s reply :-
‘The Executive has identified financial inclusion as one of its key priorities. It is one very important strand of the Labour administration’s strategy to sustain the local economy in these very difficult times. I’m sure Councillor Ramsay will also be supportive of major building and infrastructure projects like completing the dualling of the A11 and the Northern City Centre Action Plan as a means of strengthening the Norwich economy and providing much needed employment during the economic downturn. Members will be aware of the financial climate which is not only affecting the residents of Norwich, but people across the world. There are significant challenges in Norwich. The number of people experiencing Income deprivation has increased between 2004 and 2007, the date that the Norwich needs analysis was undertaken.
The Executive is quite rightly investigating the role the City Council has as a service provider but also in its city leadership role to work with existing and new partners to promote and support financial inclusion. There are a number of needs that are likely to require addressing, not all of which are in the control of the council however the Executive will be working with partners with the aim to address them:
• Increased access to financial services
• Increased access to free financial advice
• Increased access to affordable credit Officers are looking at best practice from across the country to help shape the Council’s response to these issues.
If I can give some examples of current work: An officer financial inclusion group has come together to identify gaps and barriers to the Council’s service provision and this will shortly extend to the work of our partners. Through this work officers are now ensuring that the Council’s delivery is better linked. One example is to ensure that the money advice team who provide advice to tenants are able to provide information on the services available from credit unions. We are working with the local credit unions to evaluate their work to identity what is needed to extend and develop their activity Councillor Ramsay refers to the living wage which I am a passionate advocate of and we are aware of issues faced by our residents who suffer from in work poverty.
We do know that:
• Resident weekly earnings in Norwich District are below county, regional and national averages. Norwich is among the 10% of local authorities in the country with the lowest median earnings
• The lowest earners in Norwich earn only one-fifth the median national wage.
Here the Council has a role as an employer, as a purchaser of contract work and as a community leader. Some early calculations of a Norwich living wage have been undertaken but further refinement is required so that the Council and partners can make use of it. We know a number of national businesses are committed to the living wage and we are investigating how we can work with them at the Norwich level to champion and promote the concept of the living wage. The Executive has requested that a “fair wage” is one of the social and environmental areas that should be explored in relation to the service provision procured through the re-let of the Council’s contracts. I very much hope that Councillor Ramsay and the Green group will not only support the Living Wage Strategy which I have outlined but the broader range of initiatives for the well-being of the city which are featured in the Council’s Corporate Plan.’
Councillor Adrian Ramsay asked, as a supplementary question, when the Living Wage Study would be complete? Councillor Alan Waters said that the ‘mapping’ exercise would be complete early in the New Year. The data collected would be useful in a number of ways. The Council would also be doing a benefits ‘take up’ campaign. Councillors would be kept informed of developments.
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