What if one of our employees is worried that their benefits will be affected by us introducing the Living Wage?
Employees in receipt of benefits may have their benefits reduced as their wages rise. In the vast majority of cases the benefits will "taper" off. So the employee will not be worse off, just better off by only a small amount
There are no known cases of employees being worse off as a result of receiving the Living Wage for benefits and allowances where there is a ‘taper’ in place.
We are aware that employees receiving Carers Allowance, which does not taper, have the potential to be negatively impacted as a result of pay increases. This will depend on their circumstances. Should this scenario arise we are keen to support employers and staff members by being as flexible as possible.
The last thing that we would want is for anyone to have less money in their pocket at the end of the week as a result of their employer wishing to achieve accreditation.
If any of your staff members are concerned that this would be the case then please speak to your contact at the Living Wage Foundation.