The Chief Officer Legal and Regulatory Services, HR and Corporate Policy reported on progress on the implementation of the Real Living Wage (RLW) and sought Cabinet approval to apply to become a Real Living Wage accredited employer. 

She reported that in accordance with the law all employers have to pay the national living wage to all employees aged 23 and over, and national minimum wage to employees under 23, with the current national living wage rate being £8.91 per hour as at April 2021.  The Real Living Wage (RLW) Foundation campaign for employees to be paid a rate which is based on what is needed to live and is calculated independently considering wider factors than those used to set the national living. 

The Chief Officer Legal and Regulatory Services, HR and Corporate Policy reported that whilst not an accredited organisation, the Council had committed to paying the RLW to its own employees for the last two years. The RLW Foundation had yesterday set the new rate as £9.90 per hour and if the Council becomes accredited it would implement this rate from April 2022. 

Officers had met with Cynnal Cymru, who in Wales, work in partnership with the RLW Foundation and established a pathway to accreditation to ensure the Council’s employees were paid the RLW.  She stated that the more difficult aspect of accreditation relates to the requirements for commissioned and procured services and an action plan will be developed with support from Cynnal Cymru to set out the steps to encourage contractors and suppliers to pay the RLW.  The Council, as part of its Corporate Procurement Strategy is committed to increasing community benefits delivered by suppliers, however the Council could not mandate current suppliers to become RLW employers part way through a contract.    She stated that the RLW will be addressed via social value conditions when contracts are being renewed or commissioned.  If accreditation is received, it would be subject to annual monitoring and Cabinet will also receive annual updates. 

The Chief Officer Legal and Regulatory Services, HR and Corporate Policy informed Cabinet of the financial implications of implementing the RLW, in that it could create a significant budget pressure, currently not factored into the Medium Financial Strategy.  Its implementation across externally commissioned services will have significant financial implications and create a large recurrent budget pressure, that is currently unknown.   

The Deputy Leader in commending the proposal stated that it represented a good day a clear direction for the County Borough to be a high paid economy.  The Cabinet Member Social Services and Early Help stated that its implementation will have a positive impact on social services staff and that the pandemic had proved how dependent such staff.  The Cabinet Member Wellbeing and Future Generations in supporting the proposal thanked the Deputy Leader for pursuing its implementation.  The Leader thanked the Chief Officer Legal and Regulatory Services, HR and Corporate Policy for the work undertaken on this initiative which was about fairness and equity for staff who are paid the least but who undertake most important roles, delivering essential public services.  He stated that the authority is finding it difficult to retain staff and the point had been reached where it was difficult to deliver all care packages due to staff shortages. 

RESOLVED:            That Cabinet:

·                     noted the content of the report;

delegated authority to the Chief Officer Legal, Regulatory, HR and Corporate Policy to make an application for RLW accreditation.