ICRS: The Real Living Wage Webinar

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ICRS Webinar Skills development

The Real Living Wage Webinar 

The cost-of-living crisis is affecting communities across the UK, with homelessness at record levels and millions struggling to get by. As of October 2024, 44% of the poorest fifth of households were behind on bills or loan repayments, 69% were going without essentials, and 54% had cut back on food or gone hungry (Joseph Roundtree Foundation). The crisis is hitting disadvantaged groups hardest, including ethnic minorities, disabled people, and families with children. 

In collaboration with the Living Wage Foundation and ICRS Organisational Member KPMG, this webinar introduced the real Living Wage in the UK and highlighted how it differs from government-mandated wages. It also shed light on the Living Wage Employer accreditation, which currently includes 16,000 employers across the UK who voluntarily pay the real Living Wage.  

Mark Russell, IDE Manager and Living Wage Lead at KPMG, provided an in-depth look at KPMG’s journey as an accredited employer and shared valuable insights into the successes and obstacles faced in implementing the real Living Wage. 

Panellists  

Sebastian Bachelier - Senior Partnerships & Campaigns Manager at Living Wage Foundation  

Mark Russell - Inclusion, Diversity and Equity Manager at KPMG UK 

Event Summary 

Setting the Scene 

Sebastian opened the webinar by outlining the issue of low pay in the UK, noting that 1 in 6 employees earn less than the real Living Wage. He pointed out that part-time workers are over three times more likely to be low paid than their full-time counterparts. He also emphasised that low pay is both a gender and race issue: women are 50% more likely to be low paid than men, and 17% of workers from racialised communities earn below the real Living Wage, compared to 13% of all workers. 

He then highlighted the Living Wage movement’s origins, beginning in 2001 with The East London Communities Organisation, now part of Citizens UK. A decade later, the Living Wage Foundation was founded, and by 2025, over 16,000 employers have been accredited. 

What is the Real Living Wage? 

As of April 2025, the real Living Wage (RLW) is set at £12.60 across the UK and £13.85 in London. In contrast, the government-mandated National Living Wage (for over 21s) is set at £12.21, and the Minimum Wage (for under 21s) is £8.60.  

Sebastian explained that the RLW differs from these government-mandated wages in several key areas:   

  • It is independently calculated every year based on what employees and their families need to get by. The National Living Wage (NLW) is calculated as a percentage of median earnings, and the Minimum Wage (MW) is a negotiated settlement based on recommendations from businesses and trade unions.  
  • The RLW includes a separate rate that reflects the higher costs of living in London, which the NLW and the MW do not.  
  • The RLW also applies to all workers over 18, in recognition that young people face the same living costs as everyone else. This contrasts with the NLW, which only applies to workers over 21.  

What is the Living Wage Employer Accreditation?  

The Living Wage Foundation accredits organisations who make a commitment to pay a real Living Wage. Accredited employers commit to pay all directly employed staff the RLW and have a plan in place to roll the RLW out across third-party contracts as they come up for renewal, usually over 2-3 years. The Living Wage also applies to people who deliver services on the premises, such as catering, cleaning, and security. 

Sebastian shared how paying the RLW is good for business – according to a survey of the network of Living Wage Employers:  

  • 66% said it has helped them differentiate from competitors, 
  • 87% said it has enhanced their reputation as an employer, 
  • 64% said it has helped improve relations between staff and managers.  

He also highlighted other available accreditations, such as the Living Hours Employer and Living Pension Employer, as well as the Global Living Wage Affiliate Network. 

KPMG’s Journey as a Living Wage Employer 

Mark delved into KPMG’s history as a Living Wage Employer, which began in 2011 with its accreditation. In 2018, the company embedded social mobility into its broader Inclusion, Diversity, and Equity strategy, which seeks to improve three outcomes: Accountable Leaders, Inclusive Environment, and Equitable Experiences. It has worked to achieve these outcomes through strategies such as setting socioeconomic background (SEB) representation targets in leadership and analysing pay gaps by SEB.  

Questions from the Audience  

The panellists then opened the floor for questions. Key insights included:  

  • How do organisations cascade the RLW down to their suppliers and how are they supported in this by the Living Wage Foundation?  
  • Sebastian explained that the Foundation has regional managers to support companies on their journey. It also requires companies to track and report which suppliers are paying the RLW, with the goal of transitioning them all over time. 
  • Mark shared that KPMG’s Supplier Managers request updated RLW rates each year, which they then share with direct onsite suppliers, giving them a deadline to confirm implementation. This process typically takes a few months. 
  • Has there been increased resistance from suppliers in adopting the RLW due to National Insurance hikes and inflation? 
  • Sebastian noted that despite steeper rises in the RLW to correspond with increasing inflation, they have not seen a slowdown in employers seeking accreditation.  
  • Mark added that they haven’t seen real pushback from suppliers in response to this. Also, the KPMG suppliers have shared that paying the RLW has helped them recruit and retain employees, so it is a real benefit for them to pay it.  
  • What are key obstacles that internal advocates may face when wanting to implement the RLW, and how does one get around them?  
  • Sebastian said a common challenge is securing buy-in from senior leadership, especially in organisations where direct staff already earn above the RLW. This requires encouraging leaders to think more broadly about suppliers. 
  • Mark noted that even mature organisations like KPMG face challenges. For example, while KPMG is exploring Living Pension and Living Hours accreditations, it has not yet adopted them. 
  • What are the first steps for a company to implement the Living Wage? 
  • Sebastian suggested reaching out to him directly for an informal discussion to explore alignment. 
  • Mark emphasised the importance of engaging the right internal stakeholders early in the process. 

Click here to watch the recording from the day