Report

Capital improvement

This report from UK think tank the Social Market Foundation puts forward a proposal for a new in-work poverty benchmark for London employers.

This Social Market Foundation report is the culmination of a three-year project supported by Trust for London examining the scale and impact of in-work poverty in London. It proposes the creation of a new employment benchmark, empowering employers to better support their staff.

The first stage of this project drew attention to the scale of the in-work poverty problem in London, what drives it, and its impact. It found significant concern about in-work poverty among businesses and an appetite from many to contribute to tackling it. It concluded that benchmarks can incentivise businesses to tackle in-work poverty, both amongst their own workers and those of their suppliers.

This report proposes a new in-work poverty benchmark that builds on existing accreditations to incentivise businesses to expand their anti in-work poverty efforts in a measurable and cumulative way.

The benchmark we have developed is the result of wide-ranging and lengthy consultation with a range of stakeholders, all overseen by an expert advisory panel. It is structured around three ‘domains of action’ or ‘buckets’, based on the key drivers of in-work poverty: pay and conditions, the cost of living and resilience. The proposed benchmark has three tiers, offering employers a low barrier to entry while laying out a clear pathway for businesses to build on their efforts.

The scheme should be accompanied by a wider set of complementary measures including awareness raising efforts, support for employers and robust assessment of companies’ adherence.

With ongoing sponsorship from Trust for London and continued SMF involvement, the Living Wage Foundation will be leading on a new phase of the benchmark development process, exploring how we might transform the benchmark into a practical business tool. We expect this next stage to commence in late 2024.