People in the Greater Manchester area need to earn £7.22 per hour, working full time, in order to enjoy a reasonable quality of life, according to a think-tank report.

The New Economy report says a ‘living wage’ at that level could benefit some of the region’s lowest-paid residents, but that on its own it would not be a sufficient response to poverty. It says a much wider approach is needed covering areas such as housing, transport and childcare to ensure a reduction in all basic costs.

Key recommendations

• Manchester should place greater emphasis on increasing the real incomes of those in low-paid work and raising the number of hours worked.
• Employers in Manchester should explore the feasibility of paying staff a living wage based on national recommendations by the Living Wage Foundation.
• Local living cost data should be published regularly to support public and private sector decisions on paying living wages.
• Residents who are in debt should receive further support services and advice, along with improved access to fair credit.
• The supply of affordable housing should be increased to lower living costs.
• Skills interventions should be delivered to help low-paid workers progress in work.

Source: John Holden and Luke Raikes, Pay Up? Living Costs and the Living Wage in Manchester, Working Paper NEWP 009, New Economy
Links: Working paper | New Economy press release | Guardian report