For the third instalment in our new Good Business series, Jo Sutherland sat down with Sebastian Bachelier, Senior Partnerships & Campaigns Manager at the Living Wage Foundation. We were put into contact with the Foundation after Corps Security, a living wage advocate and Recognised Service Provider, introduced us.
Tell me about your background and how you ended up at the Living Wage Foundation.
I’m a senior partnerships campaigns manager at the Living Wage Foundation. When I started six years ago, the organisation had just 15 employees, and we’ve grown to over 50 today. My initial role involved accreditation work, supporting organisations in the process of becoming Living Wage Employers. Over time, I’ve focused on working with service providers, particularly in sectors such as FM, cleaning, security, and construction. Recently, my role has evolved to look at how our accreditations support responsible business strategies, including ESG and social value.
What is Living Wage Foundation’s mission?
Our mission is simple: to end in-work poverty. We believe a hard day’s work deserves a fair day’s pay, and we bring employers and workers together to promote this. While we are just one part of the solution, ensuring people earn enough to live on is why we are here. Living Wage Week is an annual event where we celebrate employers who go beyond the minimum wage and voluntarily commit to paying a real living wage. It also acts as an anchor for conversations – a public-facing week dedicated to actively engage with new employers and other organisations seeking to tackle in-work poverty (although we work on this campaign every day of the year, just more behind the scenes). It’s a great week for collaboration and promoting the importance of responsible business practices.
How would you define in-work poverty, and why is it important?
In-work poverty refers to people who are employed but still don’t earn enough to live on. Research shows that a significant number of people living in poverty are in work, not unemployed. For example, research conducted in 2021 reveals that two-thirds of children in poverty in the UK have at least one parent in work. The issue isn’t just unemployment; many people are working but still can’t meet basic living standards.
What are the key criteria for determining the real living wage, and how does it differ from the government’s minimum wage?
We have two real living wage rates – one for the UK and one for London, reflecting the higher cost of living in the capital. Our rates are independently calculated, based on the actual cost of living, and apply to everyone over 18. In contrast, the government’s national living wage is lower, only for people over 21, and isn’t only based on the cost of living. Our rates are calculated annually by the Resolution Foundation, using data from Loughborough University’s Minimum Income Standard, and overseen by the Living Wage Commission, which ensures the rates work for both employees and businesses.
The recent election highlighted the UK’s ‘flatlining wages’, leaving British residents significantly poorer than those in France, Germany, and other countries. How is the Living Wage Foundation working with government to address this disparity?
We are always in conversation with whichever government is in power, and we have been actively engaging with the Labour government in particular. We are very supportive of the government’s plan to introduce a new methodology for the minimum wage, aligning it more closely with the actual cost of living. This is a positive step forward.
Additionally, we are encouraged by the new Employment Rights Bill, which includes minimum standards that align closely with our Living Hours accreditation. For example, the bill touches on the minimum number of hours employees should work per week, will ensure that contracts reflect actual hours worked, and will introduce a required notice period for shifts. These are all minimum standards we have been advocating for.
That said, we believe in taking action now by working with businesses that are committed to long-term improvements for their employees. Our focus is on encouraging businesses to do the right thing today rather than waiting for government intervention.
What would you consider the Living Wage Foundation’s greatest achievements?
More than 15,000 employers in the UK are now accredited as living wage Employers. That means about one in nine UK workers – over 4 million people – work for a Living Wage Employer. Over 460,000 workers have seen their pay increased, putting £3 billion back into the pockets of low-paid workers.
We have recently expanded our focus beyond low wages to tackle work insecurity through our Living Hours accreditation and post-work poverty through Living Pensions. But it doesn’t end there. We are also part of a global living wage movement and have started initiatives like Making Living Wage Cities, which focus on tackling in-work poverty in specific regions.
How do you convince businesses, particularly those in sectors navigating a tough market, to commit to paying the real living wage?
There’s a compelling business case for paying the real living wage. Research from Cardiff Business School found that 94 per cent of accredited businesses have seen tangible benefits, with 87 per cent reporting it improves their reputation, and 66 per cent noting it helps them stand out from competitors. In industries with high employee turnover, over 60 per cent of employers report improved recruitment and retention, which leads to reduced costs for training and onboarding.
Beyond the business case, there’s also a strong moral argument. Sharing the personal stories of workers highlights the real-life impact. This isn’t about luxury, it’s about people being able to meet their basic needs and improve their quality of life.
Additionally, our accreditations align with responsible business strategies, such as promoting social mobility, advancing diversity, equality, and inclusion (DE&I), and enhancing health and wellbeing. These efforts not only contribute to long-term ESG goals but also improve favourability in tenders, particularly in sectors where social value in procurement is increasingly important.
What industries have been most receptive to the Living Wage Foundation, and where do you see opportunities for growth?
Early adopters include sectors such as finance, law, tech, and pharmaceuticals, which tend to find it easier to implement given starting salaries are relatively high in these industries. More recently, we have seen growth in energy, transport, and construction. Areas we’d like to see more growth are sports and hospitality. We have made progress with some Premier League football clubs, but there’s more to do. We are also keen to see more large supermarkets get on board as that would have a significant impact across the UK.
Service providers, such as cleaning, security, catering, and FM companies, would benefit greatly from adopting the real living wage. That’s why we developed the Recognised Service Provider accreditation specifically for these sectors. We understand how important it is to make the living wage accessible to service providers and organisations in the built environment, which is why this accreditation supports their journey towards adopting fair pay practices.
Can you tell us more about the Living Pensions accreditation?
Our research shows that only 1 in 20 people earning the real living wage saves enough for retirement. Living Pensions aims to address that by building on the living wage. We ask employers to ensure that 12 per cent of an employee’s paycheck is saved into a pension, with at least 7 per cent coming from the employer. This ensures that people can retire without falling into post-work poverty.
What is Living Hours?
Living Hours is about providing employees with secure, predictable work. We require three things: contracts that reflect actual hours worked, a minimum of 16 hours a week (unless an employee requests less), and a four-week notice period for shifts. This helps employees plan for things like transport and childcare, reducing the stress and uncertainty that comes with irregular hours.
Final thoughts?
We believe that paying a real living wage is the right thing to do – for businesses, for workers, and for society. It’s not just about improving wages; it’s about ensuring dignity, security, and fairness for everyone in the workforce.
You can find out more about the Living Wage Foundation’s research here.
Follow our Good Business Campaign
Find out more about our Good Business campaign here, and and read our previous interviews:
- Andrea Charlson, Madaster UK Q&A
- Guenaelle Watson, 360 Workplace Q&A
- Mike Bullock, Corps Security Q&A
Would you like to get involved? Email me at jo@magentaassociates.co.
