wage: The leftwing thinktank said the plan which would be voluntary would involve increasing rates to the voluntary living wage, which is run by the Living Wage Foundation and recommends employers pay at least 10.20 an hour in London and 8.75 in the rest of the country, according to The Guardian. Employers including the drug-maker Glaxo Smith Kline, Unilever, the retailer Lush and the accountants KPMG, have already adopted the voluntary wage rates with their own employees. According to the study, by the Smith Institute, employers need the spur of a higher minimum wage to shake them out of a spiral of low productivity and low growth that depresses company revenues and has trapped about 2 million workers on the current minimum wage of 7.38 an hour, or 7.83 for those aged 25 years or older. They also make a commitment to force suppliers and clients to pay the higher minimum wage. How much is an hour worth The war over the minimum wage Read more The institute, which is named after the former Labour leader John Smith, said a local living wage dividend could increase to 1.1bn, when taking into account economic multipliers such as increased local spending by low-paid workers and local authority spending to improve the infrastructure of the region. More than half a million workers would secure an average annual pay rise of more than 1,700, and UK city regions would benefit from a 560m boost that could top 1bn if the government handed much of the extra tax generated to city mayors and the newly created combined authorities.
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