Funders Guide and FAQs

Frequently Asked Questions

What does ‘Living Wage Friendly Funder’ mean – why is this not called ‘Living Wage Funder’?

We recognise that for some funders stating that they are Living Wage Funder is problematic. For example, they may make grants outside of the UK, where there may not be an established local Living Wage.

What if I would like to adopt the Living Wage Friendly Funder principles but cannot afford to do this for all funded projects immediately?

We understand that for some funders, the additional expense can create a problem. This does not stop you applying for the Living Wage Friendly Funder badge. We will work with you to agree a timescale by which you will be applying the Living Wage to all UK-funded posts.

What if we part-fund posts?

If you part-fund posts, you have two options. You can either:

a) decide that you will simply pay the Living Wage on the part of the post you are funding, or
b) choose to pay the Living Wage on the part you fund and pay the differential from current to Living Wage on the part you don’t fund.

How can we ensure that Living Wage is paid?

One way to do this is to include it as a term of grant in your grant contract. A sample Term of Grant is below. This is the Term of Grant that People’s Health Trust has used successfully.

We would like you to increase the hourly rate of the worker so that the post is paid at a Living Wage rate. We are a Living Wage Employer and Friendly Funder, which means that we would like to see a Living Wage in place for the posts we fund. If increasing the salary in this way is problematic for your organisation/group e.g. because it will be unfair on other team members and/or we are funding only part of a full-time post, please discuss this with us. Please note that the grant amount has been increased to reflect this change.

What if organisations we fund feel that they can’t take up the Living Wage?

There are some circumstances under which this may arise.

For example, if, as a result of awarding Living Wage to one post, a differential in pay is created which means that there is unequal pay for the same role, or there is no pay difference between the funded post and a more senior position, then this is likely to cause the funded organisation a problem. Funders should be flexible and sensitive in such circumstances. Some of the options available are to: agree that the Living Wage increase is applied across a number of posts in the organisation, to support the organisation to provide an uplift to a number of people. The alternative is that you may decide that you will exempt a particular funded organisation (this should not be the norm and you should report how many times this had occurred).

Are apprentices and interns included?

The Living Wage accreditation does not require employers to pay the Living Wage to apprentices or interns although we recommend it as best practice for employers who can afford to do so. Many accredited employers have chosen to extend the requirement to apprentices and interns.

Funders should also be mindful of government best practice guidance relating to the National Minimum Wage. Funders using interns should have an internal policy statement and follow best practice guidance from government. Intern is not a recognised legal term and some interns may

actually be workers and therefore entitled to the National Minimum Wage.

For further information you might also like to visit the Intern Aware website.

How does the Living Wage apply for different age groups?

The Living Wage applies to everyone over the age of 18.