Carers at all services commissioned by Oldham Council will now be paid the real living wage but will have to wait until April for the latest upgrade.

Oldham Council has agreed to implement the Living Wage Foundation’s ‘real living wage’ for all staff working across care services commissioned by the council starting from the beginning of this month.

Oldham Council made the commitment to implementing the real living wage for the care services it commissions back in April 2022.

The decision was finally agreed at a council meeting on Wednesday, September 21.

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However, just one day after the decision was finalised, the real living wage was increased by the Living Wage Foundation from £9.90 to £10.90 – the largest year-on-year rise increase ever.

The ‘real living wage’

The Living Wage Foundation Rate, also known as the ‘Real Living Wage’ is a voluntary rate, which is independently calculated and intended to fully take into consideration the cost of living.

The rate is higher than the Government’s ‘national living wage’, or minimum wage, which currently stands at £9.50 for those aged 23 and over, and just £6.83 for those aged 18 to 20.

According to the Foundation, most employers will immediately make the change to the new rate, which is aimed at supporting staff through winter.

Any new employers signing up to the scheme must immediately make the change but existing employers signed up have until May.

Oldham Council says it won’t be implementing the new rate until April 2023, due to the complexity of changing systems.

Extending the rate to carers

Speaking about extending the rate to carers, Cllr Barbara Brownridge, Cabinet member for health and social care said: “I know that this is a difficult time for many people in Oldham.

“The cost of living crisis is affecting everyone. Spiralling cost increases from fuel to food are making it so people’s wages have to stretch much further.

“This is why I’m proud that we’ve implemented the Foundation Living Wage for staff working in care services we commission.

“We know that many of these staff both work and live in Oldham so it’s a real benefit for people who live here, putting cash in their pockets in a time it’s needed the most.”

Council responds to new rate

Speaking about the new higher rate, a council spokesperson said: “We know this is a difficult time for many people and their finances so we are proud to now be paying the Living Wage to our commissioned care providers.

“At the time we agreed upon the Living Wage rate it was £9.90.

“A day after we formally adopted this amount a new rate of £10.90 was announced by the Living Wage Foundation.

“Knowing the complexities of how long it takes to get new pay rates formally approved in organisations, the Foundation expectation is that adoption of the new rate is in place by May next year.

“We have every intention of adopting the new rate and it is sensible to align this with our usual review of fee rates and consultation with provider organisations, which takes place in the months preceding the new financial year and aligns to the council’s wider budget setting process.”

Announcing the £10.90 update last month, Katherine Chapman, Living Wage Foundation director, said: “With living costs rising so rapidly, millions are facing an awful “heat or eat” choice this winter- that’s why a real Living Wage is more vital than ever.

"Today’s new rates will provide hundreds of thousands of workers and their families with greater security and stability during these incredibly difficult times."