Decision
Analysis
outcome: The council approved the recommendations to implement the latest accredited living wage uplift in April 2024.
summary: The decision is about the implementation of the increased living wage as per the Living Wage Foundation's recommendation.
topline: The council has decided to implement the proposed living wage increase to £12.00 per hour starting April 2024.
reason_contentious: The issue may be contentious due to the impact on the council's budget, potential tax implications, and the views of local businesses and taxpayers on wage increases.
affected_stakeholders: Council employees, local businesses, taxpayers, and potentially service users if budget adjustments affect services.
contentiousness_score: 5
political_party_relevance: No explicit mention of political parties, but living wage policies are often influenced by political ideologies and may reflect the priorities of the ruling party in the council.
URL: https://democratic.lincoln.gov.uk/ieDecisionDetails.aspx?ID=1743
Decision Maker:
Outcome: Recommendations Approved
Is Key Decision?: No
Is Callable In?: No
Purpose:
Content: Purpose of Report To recommend the proposed increase to the living wage, as announced by the Living Wage Foundation in September 2022. Decision That the increase to the latest accredited living wage uplift be implemented during April 2024. Alternative Options Considered and Rejected None. The Council was committed to maintaining its living wage accreditation. Reasons for the Decision The aim of implementing the accredited living wage was to ensure that no employees were paid below the accredited living wage hourly rate. Since achieving accreditation, the Council had taken an active role externally to encourage Lincoln businesses to also pay the accredited living wage. In November 2020, the Government introduced a higher minimum wage rate for all staff over 23 years of age and by law all employers must pay at least £10.42 per hour with effect from April 2023. This calculation was through a percentage of median earnings currently at 55%. The calculation for the living wage was made through the cost of living, based on a basket of household goods and services. In October 2023 it was announced that the real living wage would increase from £10.90 an hour to £12.00 an hour. Currently there were thirty-five employees who were paid less than the proposed living wage rate of £12.00. Fifteen employees were on scale point 2 and twenty on scale point 3.
Date of Decision: February 19, 2024