Social care workers pay lagging behind in London

Two thirds of London boroughs are yet to be accredited as London Living Wage employers; of the third that are accredited there has been slow progress in applying fair wages to the contracted-out social care sector.

In its Fair Pay report released today, the London Assembly’s Economy Committee revealed how the London Living Wage is failing to reach sectors of the economy where low pay is most widespread, such as social care.

The Committee is concerned about how the Mayor plans to make the London Living Wage ‘the norm’ by 2020, when there has been slow progress in the lowest paying sectors, (hospitality and catering, cleaning, retail and social care) and slow action by accredited boroughs to encourage contactors to deliver fair pay within these sectors.

There are currently 750,000 Londoners earning less than the living wage. With the National Minimum Wage remaining unsustainably low against the costs of living in London, those working in low-paid industries, such as social care will continue to struggle to make ends meet.

Tackling low pay will have positive impacts on individuals and their families, but also lead to a more productive workforce and higher consumer spending, and wider economic growth for London.

Social care workers are of a particular concern for the Committee as it was found low pay in the sector is a driver for high turnover and inadequate care.

London boroughs should be a driving force in the uptake of the Living Wage, particularly with their regular connections to local employers and procurement process for contractors.

The Committee recognises the severe pressure that social care departments are under and that some employers will take longer to adopt the Living Wage. The Fair Pay report recommends boroughs seeking Living Wage accreditation should set a clear start date for staged implementation to social care workers, including contracted services.

Stephen Knight AM, Chair of the Economy Committee, said “If the London Living Wage is to be the norm by 2020 the Mayor needs to tackle low pay at the heart of the issue, by targeting sectors where low pay is most prevalent.

“A functioning city is dependent on workers from these sectors to meet our basic needs.

“If the public sector can lead the way in pressuring for increased wages, in particular for people working in social care, there is an opportunity to demonstrate to more employers from low paying industries, the benefits of the London Living Wage”.

The following recommendations are some of those outlined in the Economy Committee’s Fair Pay report.

•     The Mayor should continue to promote a Living Wage procurement standard and emphasise the positive impact that Living Wage procurement would have on social care workers across the capital.
•     London boroughs seeking Living Wage accreditation should set a clear start date for staged implementation for social care workers, including contracted services.
•     The Mayor and the Living Wage Foundation should jointly develop a cohort of 20 employer champions across low-paying sectors.  These champions would advocate the Living Wage to their respective sectors.
•     The Mayor should ensure Mayor’s Office for Policing And Crime (MOPAC) and the Metropolitan Police Service adhere to the commitment to become fully Living Wage compliant by January 2016.
•     The Mayor should emphasise the positive impact that Living Wage procurement would have, particularly on social care workers across the capital.
•     The Mayor should further promote the Living Wage via procurement, investment and other commercial decisions.
•     The London Enterprise Panel should take a lead in increasing the skills of London’s low-paid workers.

Further recommendations are outlined in the report.