Preston City Council is backing fair pay with the launch of a new grant scheme to help local micro, small and medium-sized businesses and voluntary sector employers headquartered within the Preston District to become Living Wage accredited employers.
It was the first northern council to gain Living Wage accreditation back in 2012, and is now aiming higher.
By covering the cost of accreditation with the Living Wage Foundation, the council will make it easier for Preston employers to join a growing movement for fair employment and social justice.
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The real Living Wage is more than the government’s minimum. It’s a voluntary hourly rate based on the actual cost of living, independently set each year at the end of October.
Currently, the UK rate is £12.60 per hour with the London rate at £13.85 per hour. It is likely to increase in line with inflation (3%) in 2025-2026 to approximately £13 per hour.
In Preston, 35 accredited employers have uplifted over 4,200 workers onto the real Living Wage, benefiting over 15,600 employees.
Councillor Valerie Wise, cabinet member for Community Wealth Building said: “I’m delighted that we can launch this new grant scheme to support more businesses and voluntary sector employers across Preston to become accredited with the Living Wage Foundation.
“Becoming a Living Wage employer isn’t just good for staff, it’s good for business. It can support staff wellbeing, improve your recruitment and retention and so attract the best talent, opening the doors to more opportunities.
“Preston City Council is passionate about fair pay across the region. This is about building a fairer, stronger local economy — and we believe we are setting the standard.”
Preston has achieved ‘Living Wage City’ status, and with a coalition of employers and community leaders has targets to:
- Double the number of accredited employers in three years.
- Uplift more employees onto the real Living Wage.
- Expand the number of real Living Wage jobs across the city.
- Increase the number of employers accredited for Living Hours.
A spokesperson for Preston City Council voiced the benefits of the real Living Wage: “The additional income provided by earning the real Living Wage compared to the government’s National Living Wage makes a big difference to workers and communities.
“This wage supports people in being able to better provide for their everyday needs, which benefits the physical and mental health of individuals and their families.
“Employers in Preston can join in by paying the real Living Wage to all directly employed staff, have plans to extend it to contractors, and applying via the Living Wage Foundation.”
Preston City Council will reimburse the accreditation costs for eligible employers.
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