Supporting the real Living Wage

'More money going into the local economy and fewer residents earning poverty pay.'

That was the vision set out by Councillor Michael Mordey, the Leader of Sunderland City Council, speaking at a regional event to celebrate this week's Living Wage Week.

Organised by the Living Wage Foundation and Citizens UK, the event and accompanying campaign calls for 'A Real Living Wage for the North East' so that all workers can be guaranteed a fair day's pay, that allows them to afford everyday essentials and live with dignity. 

The 'Real Living Wage for the North East' event brought together NE Mayor Kim McGuinness with business leaders, workers and others to explore and celebrate the real Living Wage movement's impact on improving working conditions across the North East. 

While the North East has some of the highest rates of child poverty in the country, data from the North East Child Poverty Commission shows that 7 in 10 children experiencing poverty in the region 'are living in working households.'

Speaking about Sunderland's commitment to the real Living Wage, Council Leader Councillor Michael Mordey said: "Our vision for Sunderland is to have more money going into the local economy and fewer residents earning poverty pay. Becoming an accredited real Living Wage employer is simply the right thing to do.

"Work should pay, or at least pay enough for people to live on, but this isn't always the case, as we witness people with multiple jobs having to resort to using foodbanks and struggling to pay their bills."

Sunderland City Council has paid its own employees the real Living Wage recommended by the Living Wage Foundation since 2014. It became accredited by the Living Wage Foundation in 2020. And the city of Sunderland was the first in the North East to be recognised as a Living Wage City by the Living Wage Foundation in 2022 when it launched its Living Wage action plan.

It has continued to work in partnership with other key city employers to encourage more employers in Sunderland to go beyond the government minimum by signing up to become accredited real Living Wage employers.

Cllr Mordey said: "Being a real Living Wage Employer and our ambition to become a real Living Wage City has been a key priority of Sunderland's Community Wealth Building plans, which are about supporting residents to move out of poverty and reduce their dependence on in-work benefits. There are also tangible benefits for real Living Wage employers in terms of increased staff morale, wellbeing and retention. Paying a Living Wage not only benefits the lowest paid individuals but also the wider local economy, communities and the city.

"As a partner on the Making Sunderland a Living Wage City action group, we are committed to encouraging more city employers to sign up to becoming Real Living Wage employers. This is also about keeping the £ in Sunderland in line with our City Plan and Community Wealth Strategy, investing in our residents and communities and supporting them to be financially resilient.

"The Living Wage in the North East has had a huge impact on the lives of low paid workers. In Sunderland over 2,000 low paid workers in the city have received a pay rise as a direct result of their employer going beyond the government minimum by committing to pay a real Living Wage."

To date 50 employers headquartered in Sunderland have made this commitment. This ranges from large employers like the City Council, the University of Sunderland, Gentoo and Together for Children to small businesses and charities across the city.

One employer who has recently signed up to becoming a real living wage employer is Steve Parker from Phonetic Digital whose company is based at Mackie's Corner.

Steve said: "In January this year, when I started Phonetic Digital I knew that I needed to create positive impact in our city. That woven into the fabric of the business was a will to do good.

"The benefit of being a Living Wage employer is that it lifts our brand and elevates it demonstrably above our competitors. Both from a client and candidate perspective.

"Our most recent hire in October was impressed by our Living Wage commitment and I've had speculative messages from two potential candidates expressing a desire to work for us who have cited specifically our Living Wage status. So all round it's good for business, and everyone benefits."

Sunderland Voluntary Sector Alliance has also recently signed up as a Real Living Wage employer. Lindsey Hall, Investment and Commissioning Manager at the alliance said: "We are leading by example we committed to becoming a RLW employer demonstrating the importance of recognising the great work of people working across the VCSE sector.

"People working in the sector should not be treated less favourably than other sectors. We want to raise standards across the sector making the VCSE sector an attractive place to work with good wages and opportunities for personal and professional growth."

Cllr Mordey said the council was also committed to making the most of the opportunities presented by devolution and the new government to build what had already been achieved by Living Wage action groups in Sunderland and Newcastle and working together towards a living wage for the north east.

The real Living Wage is the only UK wage rate based on the cost of living. It's currently £12.60 an hour in contrast to the National Living Wage which is currently worth £11.44 an hour. These new rates were announced on 23 October and employers have until 1 May 2025 to implement them.