Although the Living Wage Foundation, along with Citizens UK, deserves congratulations for the success of its campaign in persuading more than 1,000 companies to be accredited as “living wage” employers, real “power to the people” will only be realised when the “living wage” becomes the statutory minimum wage throughout the country (“A living wage revolution: how a brave idea became reality”, In Focus).
Rhys Moore, director of the foundation, makes the point that we cannot wait for the government to raise the minimum wage significantly, but it is only by the enactment of mandatory legislation that all employers will pay a fair wage. These same employers may cry foul, pointing out that it will cripple their profits, but the solution is painfully obvious. The high-earners in all companies – from the boss downwards – will have to endure significant salary reductions.
As an example, Arsenal Football Club cannot continue to hide behind the excuse that deciding to pay the living wage is an issue that is “complex and political”. How can that club’s chief executive justify receiving over £2m, and pay one of his star players £130,000 per week, while many of the ancillary staff barely receive the minimum wage? This unequal situation is immoral and the remedy is a true revolution in equating real worth in our society. Who is brave enough to lead such a revolution?
MA Hobbins
Woking
Surrey
Your editorial (“Enough gimmicks. Hard-pressed families need a decent income”, Comment) rightly exposed just how un-family and child-friendly the government’s record is. But don’t forget child benefit – the erosion of both its value and its universality.
Raising the personal tax threshold while consistently cutting the real value of child benefit effectively discriminates against families with children, given that child benefit replaced child tax allowances as well as family allowances.
And even a living wage cannot take account of family size. That’s one reason why family allowances were introduced in the first place.
Child benefit, which suffers from none of the problems associated with means tested credits, should be prioritised by any “family friendly” government.
Baroness Lister of Burtersett
House of Lords
London SW1
Wonderful news that an additional 60,000 people are now to be paid a “living wage” – they can now actually afford to live. Yet how sad that, in the same issue, Will Hutton feels the need to justify the existence of taxation.
In a decent society, taxation would be generally accepted as necessary to regulate markets, prevent abuse by the powerful and protect the weak. If Labour fails to articulate a radical alternative to the Tories’ excessive individualism, I fear for the future.
Geoffrey Payne
London W5
Your leader is wrong to imply that the benefit system has protected childless households while ensuring that families with children take the hardest hit from austerity.
The fragile incomes of both have been ruthlessly hit by soaring rents, council tax and the costs of their enforcement.
Large families are expected to pay rent and council tax out of their children’s benefits as a result of the £500 weekly cap on benefits. Single adults living alone are expected to pay them out of their £72.40 JSA as a result of the bedroom tax and after the 1% freeze on increases since 2011.
The living wage is good in principle but rent, mortgage and council tax will take ever more of the minimum incomes needed for food and domestic fuel until it is supported by a policy to provide affordable housing, long before enough homes are built to have an impact on the market.
Rev Paul Nicolson
Taxpayers Against Poverty
London N17
