The calculation of a living wage: the UK’s experience

Conor D’Arcy and David Finch
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Conor D’Arcy: Resolution Foundation, London, UK
David Finch: Resolution Foundation, London, UK

Transfer: European Review of Labour and Research, 2019, vol. 25, issue 3, 301-317

Abstract: Translating the concept of a living wage into a cash figure presents a number of challenges. A recent review of the approaches used in the UK explored these, with the aim of creating a unified and improved calculation. Designing a living wage relies on some technical decisions, such as which data sources are most appropriate. But many of the building blocks underlying a living wage require judgements on societal values, expectations and norms. The living wage rates in the UK are voluntary and promoted by campaign groups; this means any methodology needs to be empirically sound but also recognise the realities facing employers. No perfect approach can exist. But through analysis, consultation with stakeholders and a clear governance structure, the method used in London and the rest of the UK offers a robust, respected and up-to-date way to calculate the income needed to meet a decent standard of living.

Keywords: In-work poverty; low pay; UK Living Wage; London Living Wage; Living Wage employers; living standards; minimum income (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:sae:treure:v:25:y:2019:i:3:p:301-317

DOI: 10.1177/1024258919847313

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