Meeting of the Parliament 01 March 2012
The committee took evidence from a variety of witnesses, whom I thank for their valuable contribution to the inquiry. I pay tribute to the committee clerks for their work in helping members to produce a balanced report.
The committee agreed that, all things being equal, the living wage is an admirable aspiration that we would all want to achieve. At present, the living wage is paid by the Scottish Government which, in directly attributable costs, spent just over £1.7 million on introducing it. The NHS and—as at the time of the report—seven local authorities in Scotland pay the living wage, and the minister confirmed today that more local authorities have introduced it since then.
In the region that I represent, South Lanarkshire Council spent £3.5 million in 2011-12 on introducing the living wage. From April 2012, a further £2 million was spent on increasing the rate of pay to £7.20. In total, that council will have spent a staggering £5.5 million on introducing the living wage. Ultimately, it is up to each council to decide how to prioritise spending decisions. Some councils have delivered the living wage as part of a broader programme of efficiencies in negotiation with unions, which has resulted in net savings that can then be spent on service provision. That is to be welcomed.