To be an accredited employer you must pay all directly employed staff the independently-calculated Living Wage rates, and have a plan in place for all contracted staff.
Where an employer has made a firm commitment to ensuring all staff earn the real Living Wage, but they are mid contract and not able to break the contract, we offer phased accreditation.
This means the Living Wage is introduced on a rolling basis as contracts come up for renewal. For longer contracts there are opportunities to implement change around break clauses.
Rolling out the Living Wage across contracts can take some time. Any contracts that are not on the independently-calculated Living Wage will be included as Milestones in your accreditation licence.
The Foundation will check in with you quarterly to ensure Milestones have been achieved. While there is no specific cut-off point for how far into the future a Milestone can be, we expect the bulk of your contracts to move onto the Living Wage within two to three years.
We monitor progress by asking employers to report to us on what percentage of their relevant contracts pay the Living Wage. For example Islington Council is able to report that 92% of their contracts are now Living Wage compliant.
Local Authorities & NHS Trusts
Local authorities & NHS Trusts may have significantly longer term contracts - for example Private Finance Initiative (PFI), social care or leisure contracts that in some cases run for up to and beyond 20 years.
For these types of contracts it is not acceptable to wait for contracts to come up for renewal. We work with employers to identify opportunities for early change, such as break clauses, and in some cases employers are able to renegotiate contracts mid cycle. We also reach out to contracted service providers to work together to find solutions. You can read more about our work with contracted service providers here.
Adult Social Care
Adult social care poses a particular challenge for the UK, now and in coming years. For historical and financial reasons this is one of the hardest sectors to achieve the Living Wage. Despite this, we believe the Living Wage must be part of the solution.
In October 2013 Citizens UK launched a Social Care Campaign - a new movement of care recipients, their families, care workers, and communities, calling for better quality social care and a better deal for care workers.
Full details of the campaign and our charter can be found here.