156444 at Middlesbrough (Credit - David Sherrington)

Northern accredited by the Living Wage Foundation

Northern, the region’s largest train operator, has signed up to the national Living Wage Foundation following a pay increase for almost 200 rail workers.

Northern’s accreditation comes after a wage rise for 185 employees, including the rail company’s Train Presentation Operatives, who from July all received a pay increase to £8.45 per hour – up from £7.83.

Joining the national scheme is another employment and jobs milestone for Northern. The company has added 450 new roles since the start of its franchise in April last year - bringing the total number of employees to 5,600.

Northern’s Managing Director Alan Chaplin said: “When we started the franchise in April 2016 we made a number of firm commitments around our people – including gaining the Living Wage accreditation.

“To be recognised as a Living Wage employer almost 18 months on is another proud achievement for Northern and it follows a recent 2.6 per cent pay rise for all our frontline employees.

“Joining the Living Wage Foundation reflects the value we place in our people, ensuring they have sufficient income to support their families.”

Katherine Chapman, Director of the Living Wage Foundation added: “We welcome Northern to the Living Wage movement as an accredited employer and are so pleased they have carried out the commitment they made when winning the franchise.

“Responsible businesses across the UK are voluntarily signing up to pay the real Living Wage now. The real Living Wage rate is annually calculated to reflect the real costs of living.

“We are a movement of more than 3,300 UK employers who together want to go further than the government minimum to make sure all their staff earn enough to live on. We have lots of small businesses as well as big household names like; IKEA, Aviva, Burberry, Chelsea and Everton Football Clubs and many more.

“These businesses recognise that the Living Wage accreditation is the mark of a responsible employer and they, like Northern join us, because they too believe that a hard day’s work deserves a fair day’s pay."

Part of the Arriva Group, Northern plays a vital role in the North of England by connecting tens of thousands of people to work, leisure and education every day. The company operates 333 trains and manages 477 stations across the region. The Northern franchise runs until March 2025.

The real Living Wage, which has cross party support, is an hourly rate which is set independently and updated every year. It is calculated according to the real costs of living in the UK and employers choose to pay the Living Wage on a voluntary basis. There are currently 3,300 accredited employers.

The Living Wage commitment sees all employees of a company, regardless of whether they are direct employees or third-party contracted staff; receive a minimum hourly wage of £8.45 in the UK or £9.75 in London. Both these rates are significantly higher than the statutory minimum for over 25s of £7.50 per hour introduced in April 2017.

Organisations that have taken up Living Wage accreditation over the past year include HSBC, ITV, Nestlé and both Houses of Parliament.

Contact Information

Glyn Hellam

Media Manager

Northern

01904 568652

07795 008693

Glyn.Hellam@northernrailway.co.uk

@northern_pr

Notes to editors

For more information about Living Wage please contact Monica Brimacombe at monica.brimacombe@citizensuk.org

About the Living Wage Foundation

The Living Wage is an hourly rate set independently and updated annually. The real Living Wage is calculated according to the basic cost of living in the UK. Employers choose to pay this wage on a voluntary basis. The real Living Wage enjoys cross-party support.

The UK Living Wage for outside of London is currently £8.45 per hour. The London Living Wage is currently £9.75 per hour. This figure covers all boroughs in Greater London. These figures are calculated annually by the Resolution Foundation and overseen by the Living Wage Commission, based on the best available evidence on living standards in London and the UK.

The Living Wage Foundation recognises and celebrates the leadership shown by Living Wage employers across the UK. There are currently over 3000 accredited employers. We are an initiative of Citizens UK. We believe that a hard day's work deserves a fair day's pay. We support responsible employers to voluntarily go further than the government minimum and pay the real Living Wage, to all their staff, so they can earn enough to meet the cost of living.

We receive guidance and advice from the Living Wage Advisory Council. The Foundation is supported by our principal partners: Aviva; IKEA; Joseph Rowntree Foundation; KPMG; Linklaters; Nationwide; Nestle; Resolution Foundation; Oxfam; Trust for London; and Queen Mary University of London.

 What about the Government’s national living wage?

In July 2015 the Chancellor of the Exchequer announced that the UK Government would introduce a compulsory ‘national living wage’. This new government rate is a new minimum wage rate for staff over 25 years old. It was introduced in April 2016 and the rate is £7.50 per hour as of April 2017. The rate is separate to the Living Wage rate calculated by the Living Wage Foundation.  The government rate is based on median earnings while the Living Wage Foundation rate is calculated according to the cost of living. 

The National Minimum Wage 
(including the ‘national living wage’)

 

The Living Wage

 

         The legal minimum an employee can earn in an hour. Employers break the law if they fail to pay this rate

         A voluntary rate that employers commit to pay in order to go above and beyond. The Living Wage Employer Mark is a sign of best practice

         The ‘national living wage’ rate is set at £7.50 an hour

         The current UK Living Wage is £8.45 an hour.
The current London Living Wage is £9.75 an hour

         This will increase each year, with the aim of reaching 60% of the median wage across the country by 2020 (this would mean around £9 an hour but the Low Pay Commission will consider what the market can bear)

         This will increase in line with the cost of living with increases announced in Living Wage Week every year

         Different rates apply depending on the age of the employee. The ‘national living wage’ is for over 25s only

         The Living Wage is the same for all employees over the age of 18

         Set by the Low Pay Commission

         Set by the Living Wage Foundation

         Based on an estimation of what the market can bear

         Based on the cost of living

         The rates are the same right across the UK

         There is a separate rate for London to reflect the higher cost of living in the Capital