Lancashire businesses can't afford to pay recommended 'living wage'
Business owners are being encouraged to fork out more to help with cost of living
It's feared business in Lancashire simply can't afford to pay people the recomended 'living wage on £9.90 per hour.
The figure is set by the independent Real Living Wage Foundation, and is now just 40p more per hour than the national minimum wage set by Government (£9.50 for anyone over the age of 22.)
More than 10,000 employers are now signed up to pay the higher rate, meaning one in 13 workers should get the sum.
Katherine Chapman, director of the Living Wage Foundation, said:
"Since the campaign's beginnings 20 years ago, Living Wage accreditation has become a benchmark of responsible business in the UK, shaping the debate on low pay and changing the lives of hundreds of thousands of people across the country with a wage that delivers dignity.
"As inflation hits new highs, the Living Wage movement is more vital than ever. We are facing the worst income squeeze on record and no-one will feel it more sharply than the nearly five million people in low-paid and insecure jobs, already struggling on tight budgets.
"It's crucial that employers who can afford it protect those who will be most affected by price rises by paying a wage based on the cost of living."
We spoke to Geoff Mason from the Chamber of Commerce for North and West Lancashire.
He said:
"Businesses are really, really struggling at the moment in many instances. Obviously not all, but but many are the issues around like the COVID restrictions and lockdowns hit many businesses in many sectors very, very hard, especially those who employ people in some of the lowest wage jobs.
"Especially around the hospitality industry we've seen some massive impacts on those businesses and they're still struggling to recover.
"During the pandemic we've had manufacturing backlogs and supply chain issues caused as a result of things suddenly reopening all at once and businesses and manufacturers are struggling to get back up to speed, and as that's happening we're still feeling the repercussions of that.
"It's been really difficult on employers as well. We've been warning businesses about the rise in prices around raw materials, shipping and other areas for quite some time now."