Living Wage rise announced in York

The new UK Living Wage rate, which has increased by 20p, was unveiled at an event co-hosted by the Joseph Rowntree Foundation (JRF) and Nestle.

Around 40 delegates at the event, including representatives from the UK's first Living Wage pub, the Golden Ball in Bishophill, heard how Nestle is now a Principal Partner of the Living Wage Foundation.

In its new role the business, which the first UK major manufacturer to receive accreditation as a Living Wage employer, will now provide advice to the Living Wage Foundation, and encourage other employers to sign up to the scheme.

Nestlé UK & Ireland Group HR director, Matt Stripe said: "As a major UK employer we know that acting responsibly is not only good for the communities we operate in, but also makes good business sense.

"Supporting the Foundation as a Principal Partner underlines our belief that people are at the heart of our business.

"We are proud to be the first mainstream manufacturer in the UK to become a Living Wage employer and see this as an opportunity to be a positive influence in our sector."

As well as paying its 8,000 employs across the UK business the UK Living Wage, Nestle is now working with contractors to ensure that their employees working across Nestlé sites will also be paid the same rate by December 2017.

Also speaking at the event, held at Nestle's Haxby Road factory was Kersten England, chief executive of City of York Council, who said although the Living Wage rise is "not a silver bullet" it will help York reach its ambition of being a Living Wage City.

She said: "Although York is a relatively wealthy place with near to full employment, many in the city are in low paid work.

"We continue to work with the city's businesses and skills providers with the aim of ensuring that everyone can benefit from growth.

"I am pleased to see that major employers in the city such as Aviva and Nestle are fully engaged on this agenda and have made strong commitments to their staff."

The new rate was revealed as data showed more than 25 per cent of workers in the Yorkshire and Humber Region are on less than the living wage.

Julia Unwin, chief executive at JRF, who has called for the minimum wage to be let out of politics and remain with those that fully understand its significance, said: "With the economy recovering from a deep and damaging recession, our research shows higher pay is vital to helping low-earning workers make ends meet.

"The Living Wage - which recognises the cost of essentials in how it is calculated from JRF research - is an important part of the answer.

"We will never achieve our full economic potential until we address the high levels of poverty across the UK, so paying a Living Wage is an important first step to getting to grips with the country's in-work poverty problem.

"As an employer providing housing and care services who pays the Living Wage, we would urge all employers who can afford it to consider paying the rate - a decision which is good for individuals, businesses and society."

As part of Living Wage Week, a small business event is being hosted at the Golden Ball Pub, the focus of which will be for businesses to share experiences of becoming Living Wage Accredited, and also to discuss the barriers stopping other small businesses from becoming accredited.

The event is being held on Thursday 6 from 5.30pm to 8.30pm, and will feature Pete Kilbane from the Golden Ball Pub and Jane Hamilton from the York CVS nursery.

Amy Hulme will be representing the Living Wage Foundation to discuss the barriers to becoming an accredited Living Wage employer, and also presenting the Golden Ball their Living Wage Champion Award.