The Lambeth Council Cabinet meeting in October is due to formally adopt
as policy the Labour administration’s commitment to tackling low pay and our
ambition to become accredited as a London Living Wage Employer. The Total
Facilities Management procurement contract agreed in July has delivered our
first London Living Wage contract covering services that employ cleaners,
security and maintenance staff.
The council’s Pay Policy Statement lays out the aim that all council
employed staff should receive the London Living Wage (currently £8.31 per hour)
as a minimum. All but a few staff are paid at the LLW or above. We are
reviewing our procurement policy to ensure Living Wage is paid on new
contracts. This would be done at the point of re-letting or tendering for new
contracts with a requirement that those contractors bidding for the work
incorporate a pricing option that includes the payment of the Living Wage as a
minimum, and will be agreed subject to affordability. In some cases there will
be significant costs for council contractors to bring their pay in to line with
the LLW. For example, in adult social care lots of workers (e.g. carers) are paid
the minimum wage. The estimated annual cost of implementing the LLW across all
existing contractors in Lambeth is £10 million per annum. About 60% of this is
social care.
Living wage employer accreditation is managed by Citizens UK and provides
employers with a licence to the living wage employer mark. Lambeth Council will
be a fully accredited Living wage employer soon.