Agenda

RECOMMENDED that the minutes of the meeting held on 24 November 2020 be confirmed and signed by the Chair as a correct record.

(The report that was originally marked "to follow" was published on the website on 11 January 2021.)

Purpose

At Employment Committee (EC) on 22^nd September 2020, Members requested further clarification on the financial impact of becoming an accredited Living Wage employer (previously known as an accredited Foundation Living Wage employer). Members wanted to understand in particular the financial impact the council would incur from its contractors

The purpose of this report is to provide Members with the estimated financial impact to enable an informed decision as to the next steps. It will also inform Members of the Real Living Wage (RLW) rate increase from 1^st April 2021, (to £9.50 per hour) and to advise members of the financial impact on its pay bill.

Additionally, the report sets out the progress made by the working group in researching and understanding the requirements, challenges and risks associated with adopting the Foundation Living Wage and how they may be overcome or mitigated. 

RECOMMENDED that

Members' instructions are sought as to which of the following recommendations to adopt, noting that recommendations i) and iii) are mutually exclusive:

i)             Members agree to endorse the application of Living Wage accreditation status and seek approval from:

a.      Full Council as part of the Annual Budget and Council Tax setting meeting, including the identification of a further £3.2m of General Fund Budget Savings covering the period 2021/22 to 2023/24

b.      The Cabinet Member for Housing as part of the Housing Revenue Account (HRA) Budget and Rent Setting meeting, including the identification of a further £0.9m of HRA Budget Savings covering the period 2021/22 to 2023/24 (noting that ordinarily such matters would be discussed through consultation with the housing tenants representatives) 

ii)            Members agree that at this current time they wish to continue to pay all Council employees the Living Wage rate, noting that the cost of this is provided for within existing budgets

iii)           Members instruct Officers to work with the Living Wage Foundation to seek to attain Living Wage accreditation through the development of an implementation plan over a suitable period that is consistent with the Council's overall financial constraints and also accommodates any likely legal / procurement challenges; any such plan to be approved by Full Council with any financial impact commencing in 2021/22