Why Devon needs the Living Wage to boost local economy

118,000 people working in Devon would benefit from the introduction of a Living Wage. Research by the South West TUC released during Living Wage Week (4 - 10th November) shows 32% (15,558) of workers in Torbay, 28% (27,273) in Plymouth and 28% (75,239) in the rest of Devon earn less than £7.20 an hour – the lowest rate that campaigners believe supports a decent standard of living outside London.

Pay campaigner Kit Leary said: “Paying the living wage is good for business, good for the individual and good for society. It would close the gap between luxury pay at one end of the scale and poverty pay at the other.

“The local economy needs a boost and encouraging consumer spending, particularly among low-paid workers, is a good way to do it.”

The South West TUC is urging local authorities across the region to pay their staff the Living Wage, as well as pushing the Local Economic Partnerships (LEPs) to adopt it as part of their economic strategy and encouraging private sector employers to recognise the benefits of paying it to their staff. It has set up a website http://fairpaysouthwest.org.

Kit Leary said: “Employers in the South West have the chance to take thousands of families out of poverty and help boost fragile local economies in cities that have adopted living wage policies.

"Government ministers, public authorities, businesses and the City have seen the moral and practical benefits of paying a living wage. This is not a luxury in a time of economic downturn, but the key to building a fair, equitable and sustainable recovery.

"We need a Living Wage because what will put our economy back on its feet, and what will get it growing again, is by putting money in the pockets of people who will spend it, not hoard it on offshore tax havens. When money rings through the cash registers of local businesses again will they be able to hire more workers, whom in turn will spend further money, generating the growth we so badly need.

"The South West is a fantastic place to live. With the Living Wage, we can also make it a fantastic place to work for hundreds of thousands of families, too. Ultimately, the Living Wage is about an honest day’s wage for an honest day’s work – isn’t that something still worth fighting for?"