Living wage could help stave off debt problems

Mon, 28 May 2012

By Will Regent

The experienced by many people in lower-paid jobs might be eased if employers introduced a new living wage.

Sarah Vero of the, speaking on the BBC Woman's Hour podcast, has suggested companies should offer workers more than just the bare minimum.

Ms Vero explained that while the minimum wage set by the Low Pay Commission stands at £6.08 per hour, the living wage comes in at £8.30 in London and £7.20 for the remainder of the UK.

The Living Wage campaign was launched by parents in East London in 2001 and takes into account factors such as transport, goods, housing, food and general day-to-day spending when calculating the required earnings.

Greater uptake of the scheme might therefore help people trying to combat debt problems in the current economic climate.

Ms Vero stated: "We regularly meet with cleaners across Whitehall and across the government departments and they are very poorly off indeed. Some of these women are working two to three jobs."

She explained these people often have a number of roles, including being a parent, grandparent, cleaner and care worker.
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