I'm pleased to support this motion. Funded by the Joseph Rowntree Foundation, what was then called a 'minimum income standard' was first calculated and documented by Loughborough University's Centre for Research in Social Policy in 2008. This was a UK average and did not include variations inside and outside London. Following a campaign by Wrexham-based TCC, Together Creating Communities, the Assembly introduced a living wage on the basis of the minimum wage plus 15 per cent for cleaning and contract staff in 2006. Six years ago today, the Assembly formally announced that it had become an accredited living wage employer.

The Cardiff Business School report 'The Living Wage Employer Experience' notes that the living wage has influenced UK Government policy, quote,

'most notably with the 2015 announcement of the national living wage' and evidence of real living wage employers having a human resource motivation. The real living wage is the only UK wage rate voluntarily paid by over 4,700 UK businesses, over 3,000 of which have gained Living Wage Foundation accreditation, which believe that their staff deserve fair pay. These employers pay the real living wage, higher than the Government minimum and the London living wage in London. Over 180,000 UK employees have received a pay rise as a result of the living wage campaign, and the living wage foundation states that it enjoys cross-party support. The rates are calculated annually by the Resolution Foundation, on behalf of the Living Wage Foundation and overseen by the Living Wage Commission set up in January 2016, using a formula based on what happens to living standards from one year to the next in both London and the UK. The commission provides a transparent decision-making forum to resolve specific judgments about how to incorporate policy changes and new sources of data into the calculation. It also advises on how to manage extreme year-to-year variations from general rises in living costs.

The current UK living wage outside London is £9 an hour and £10.55 in London, but average earnings in Wales are lower and have grown slower than in other UK nations. According to the Bevan Foundation, 300,000 employees in Wales are paid below the voluntary living wage. Their 2016 'Fair Pay' report shows that the living wage would benefit Wales's employers, employees and their families, and the wider economy with minimal risks. They state that the benefits for Wales's employers include increased productivity, improved staff recruitment, attendance and retention, and reputational enhancement, with very modest impacts on wage bills, although varying with the size and sector of the organisation.

They add that the benefits for Wales's employees include more cash, more time and increased well-being, although the extent of the gains depends on employee working patterns, welfare entitlement and other household arrangements.

The wider economy, they say, benefits from increased tax and national insurance revenues and savings on benefits. Modelling of the impact on total employment suggests that, at worst, there's a very small risk of very limited job loss, and, at best, some increase in employment. 'Importantly', they say,

'many households may find that they're able to have slightly income without working additional hours, be more financially secure and maybe less reliant on benefits. The gender pay gap is likely to narrow due to the overrepresentation of women in Wales's low-paid workforce, and individual well-being and financial independence can also be strengthened.'

As a certain former Mayor of London said,

'It is a win-win scenario for the workforce and employers alike.'

'Importantly', he said,

'this isn’t just about economic dividends, but the immeasurable improvement to quality of life and workplace morale.'

The Welsh Conservatives believe in aspiration and that hard work should be rewarded with fair pay. Our workforce is the most valuable asset we have, and anything that undermines their efforts is damaging to our economy. It's vital that people get the wages they're entitled to.

Yes, we support the national living wage, which stands to benefit 150,000 working people in Wales by 2020. However, we also recognise that the real living wage can provide clear benefits in terms of productivity and absenteeism. We have, therefore, long supported action to build on the national living wage to further support public sector workers, and every large business should also aim to pay the voluntary living wage, and we should work with small businesses to explore how they can achieve this on a sustainable basis. Anything that can further improve the living standards of the hard-working people of Wales should be explored. Diolch yn fawr.