Please note: this article and the cited report were published in 2022.

A report commissioned by the Penzance Business Improvement District (BID) team and undertaken by the University of Exeter explores the challenges and opportunities of Penzance becoming a ‘Living Wage Town’.

The results show that both local residents and employers broadly agree that Living Wage Town status would bring potential gains, including improving the economic prospects of residents and the reputation of Penzance.

A living wage town: defined

Promoted by the Living Wage Foundation, the Real Living Wage (RLW) of £9.90 aims to better reflect the cost of living than the government-set National Living Wage, which sets a statutory minimum level of pay at £9.50. The foundation is supporting the concept of Living Wage Towns and Living Wage Places, to recognise areas where employers and the community are committed to adopting the higher rate of pay.

Currently, only one town in the UK – Glenrothes in Scotland – is accredited a Living Wage Town. As a result, there is a lack of research into the potential impact of the viability of the schemes in rural areas, which may be largely dependent on one or two industries such as tourism.

Research methods 

Penzance BID commissioned the report with funding support from Cornwall Council and Cornwall and Isles of Scilly Local Enterprise Partnership (LEP). The research team, from the University of Exeter’s Environment and Sustainability Institute (ESI), based at the Penryn campus in Cornwall, undertook a survey of residents and interviewed employers. The aim was to: understand the suitability of the scheme for Penzance; identify existing priorities and needs regarding employment and income; and identify the potential impact of an uplift in wages to the RLW.

What the research discovered

Some of the main findings:

• The issue of low pay is a major concern and the prevalence of low pay may be increasing
• People are worried about meeting living costs that are rising faster than wages
• People paid below the RLW are not a specific group, but spread across age, circumstances and employment type
• People are broadly supportive of adopting the RLW, which could improve the economic status and reputation of the town
• Many employers feel a social and moral obligation to support the RLW, but some perceive it to be unaffordable
• Employment factors beyond the RLW are also a major concern: namely seasonality of employment, lack of guaranteed hours, and housing

‘Raising wages would have a significant impact’

Says Professor Jane Wills, director of the ESI and co-author of the report, ‘The Real Living Wage is designed to “make work pay” and allow more money to circulate in the local economy, supporting businesses as well as workers. It is needed now more than ever.’

Adds Dr Claire Collins, lead researcher, ESI, ‘Although the Real Living Wage is now only 50p an hour above the statutory National Living Wage, raising wages would have a significant impact on quality of life, feelings of worth and wellbeing for the local community.’

Louis Gardner, Cornwall Council cabinet portfolio holder for economy, says, ‘There is a clear interest amongst both employers and employees in Penzance in becoming a Living Wage Town, which has the potential to make a significant impact given the low rates of pay across Cornwall and the Isles of Scilly. Penzance is leading the way to explore opportunities and the leadership shown by local employers, the BID and councillors is an example for others to follow.’

Moving forwards, an action group is being formed with the aim of encouraging others to sign up to paying the RLW. It includes businesses already accredited as paying the RLW, as well as local workers and civic leaders. The goal is to put Penzance on the national map as a fully accredited Living Wage Town.