This blog has been written by Edmund Heery, David Nash and Deborah Hann, researchers at Cardiff Business School
Support for the real Living Wage is strong in London. Currently London has 4,037 accredited Living Wage Employers, 26 per cent of the UK total, and together these employers directly employ more than 1.4 million people. The Make London a Living Wage City campaign, launched in 2021, is building on this success, persuading more employers across London to adopt the Living Wage.
Higher education has contributed to this London-wide success. There are 27 colleges and universities in London, accredited by the Living Wage Foundation, which employ a combined workforce of 72,000. These Living Wage universities are drawn from the full range of higher education institutions and include:
- The University of London and ten of its colleges, such as Birkbeck, Kings, QMUL, and UCL.
- Large post-1992 universities, including East London, Middlesex, South Bank, and West London.
- Specialist institutions in the arts (e.g. Courtauld Institute), business (e.g. London Business School), and medicine (e.g. London School of Hygiene and Tropical Medicine).
- Foreign universities with London campuses, such as Florida State and Syracuse.
Twenty of London Higher’s 37-strong core membership are accredited Living Wage Employers and several of its Centres Group – universities from elsewhere in the UK with an offshoot in the capital – have also signed up, including GCU, Loughborough, Ulster, and York St John.
Times are hard across the sector but there are several reasons why universities have chosen to adopt the Living Wage.
First, implementing the Living Wage can improve aspects of business performance, improving recruitment and retention and helping to develop a positive employer brand: one that is attractive to the full range of potential recruits, not just those entering lower paid jobs.
Second, adopting the Living Wage is a very tangible way in which universities can demonstrate their civic commitment. London Higher’s Access HE Division helps under-represented learners to enter and succeed in higher education. The calculation of the Living Wage includes the cost of a personal computer for home study and the testimony of those who have received a pay increase refers repeatedly to extra income going to support the personal and educational development of children and grandchildren.
Third, as this example illustrates, the Living Wage is impactful. Across the UK, about 25,000 university employees have been directly affected by the Living Wage, receiving a substantial pay increase. London institutions that are accredited report that 10,000 employees have benefited from the scheme, resulting in a total wage transfer of about £155M. The UK-wide wage transfer in higher education is estimated at about £253M.
Fourth, the Living Wage benefits vulnerable and disadvantaged groups within the labour market. More than a third of those receiving a pay increase in London universities are not employed directly, but work for contractors providing outsourced cleaning, catering, and security services. Work of this kind is often performed by minority groups and recent migrants. In addition, 40 per cent of recipients work part-time, which continues to be a form of employment dominated by women and which is characterized by low-pay. Many London Higher members are also part of Advance HE’s programmes to promote gender and ethnic equality in higher education. Boosting the pay of low-paid workers is a very direct way of advancing these equality goals.
Finally, the Living Wage is supported by many students. Eleven student unions in London are themselves Living Wage Employers – including those at London Met, LSE, Kingston, and the University of the Arts – and students have often been at the forefront of campaigns to encourage universities to adopt the Living Wage. Adopting the standard, moreover, can help form a positive ‘consumer brand’, attracting would-be students to apply to universities in the same way that it can attract graduate job applicants.
Although higher education has contributed to the success of the Living Wage in London, there is considerable scope for further growth. Seventeen of London Higher’s core membership are not yet accredited as Living Wage Employers, and other London universities have also yet to adopt the Living Wage standard.
In several cases, non-accredited institutions apply the Living Wage, at least to their direct employees. The emergence of this ‘shadow’ Living Wage is a welcome development, extending the reach of the scheme to more low-paid employees. Full accreditation with the Living Wage Foundation is nevertheless desirable because it ensures the Living Wage is paid to contract workers, is indicative of long-term commitment, and helps establish the standard as a visible norm within the sector.
Universities are part of London’s relatively well-paid, professional service economy. Within the sector, however, there is hidden low pay and in-work poverty, experienced most clearly by those providing outsourced support services on minimum wage contracts. Higher education institutions adopting the Living Wage have taken a welcome step to tackle this hidden low pay. There is much to celebrate – but also much to be done if the sector in its entirety is to help make London a Living Wage City.
If your institution is interested in making this commitment, you can visit the Foundation website to learn more.
