A GO-ahead company has put its money where its example is to become Hereford’s first accredited Living Wage employer.

Every member of staff at Whitestone-based allpay will get a wage above the statutory minimum rate.

Payment specialist allpay is one of the fastest growing companies in the UK and recently completed  a £5 million expansion to handle new business and create around 200 new jobs.

The company is also strongly committed to - and recognised for - the standard of its apprenticeship programme.

Promoted by the Living Wage Foundation, the Living Wage aims to encourage employers to raise the basic salary of its employees to a level that will earn them enough money to provide for their families.

By joining the programme, allpay commits to ensuring that its employees can afford the essentials of life, reducing the risk of financial hardship and poverty.

In December, Herefordshire Council debated the principle of introducing the Living Wage through a motion aimed at stimulating debate on low pay in the county.

Set as an informal benchmark, employers are encouraged to pay at least £9.15 per hour in London, and £7.85 across the rest of the country, well above the minimum wage rate of £6.50.

The scheme has already received wide-ranging political support, and, with over 1,200 employers already being accredited by the Living Wage Foundation, increasing numbers of companies are committing themselves to paying a liveable wage to employed and subcontracted staff.

Rhys Moore, Director, Living Wage Foundation said: “We are very pleased to welcome allpay to the growing list of accredited Living Wage employers. They are the first accredited Living Wage employer in Hereford and we hope that the leadership they are showing will encourage others to consider how they could implement the Living Wage in their workplace.

"At a time when over half of those classed as living in poverty, are also in work, increasing the wages of the lowest paid clearly has an important impact on the lives of hard working families. It’s fantastic to see innovative companies like allpay recognise that the Living Wage is not only the right thing to do, but also good for business.

“The Living Wage is a robust calculation that reflects the real cost of living, rewarding a hard day’s work with a fair day’s pay.”

Tony Killeen, Managing Director and Founder of allpay, said: “In the industry we work in we are constantly looking to have a positive impact on the financial positions of those around us whether it be our clients, their customers or our staff. In doing so, we want to provide solutions and opportunities to ultimately make their lives better.

“When we heard about the Living Wage Foundation and its initiative, we were very keen to become an accredited employer, because of our desire to ensure that the people we have working for us are given a fair day’s pay.

“In becoming accredited, we are the first in Hereford to do so and one of a select but growing band nationally, that are living and embracing these values. Getting it right at home is a critical part of doing this.”

Herefordshire Council debated the Living Wage in December to back the principle of its eventual introduction.

Cllr Felicity Norman said her motion represented an opportunity to encourage employers in what is, historically, a low wage county.

Members heard that though only a few Council employees were paid below the living wage,  the differential between the lowest and highest paid posts was at a ratio of 1:11, compared with the 1:10 proposed in the motion.

Cllr Tony Johnson, council leader, offer his support with caution, saying an inflexible wage differential between the highest and lowest paid staff might prove restrictive. 

Market rates, he said, should determine the appointment to the post of Chief Executive and, if contractors, for example those providing care services, were to pay the living wage the additional cost to the Council would be some £3-5 million per annum. 

Members were told that of a number of people receiving care services were currently self-funding and, if costs were increased by the Council’s actions this would, in turn,  increase the burden on them. 

The “real solution” was to provide economic growth, said Cllr Johnson.

Cabinet Member (Adult Wellbeing) Cllr Graham Powell referred to the “difficult negotiations” over the costs of commissioning adult social care services. 

Advocates of the introduction of the living wage needed to be prepared to consider where savings could be obtained to support its implementation, he said.

Other issues raised included:

- In seeking to set a good example the Council should not give the impression that anyone not paying the living wage was setting a bad example.

- By redefining posts currently paid below the minimum wage and giving them additional responsibilities the Council could introduce the living wage without having to revisit the evaluation of other posts.

-  The living wage had no statutory basis.   It was based on one calculated rate for London and one rate for elsewhere in the UK, making no distinction between urban and rural areas.

- There were alternative ways of growing the economy to that proposed by the administration, for example a green economy.

At a vote, the council resolved that the chief executive reported to the council’s employment panel and the council itself on how to achieve the introduction of the living wage  at £7.85 an hour  into the Council’s pay policy.