The Children’s Society has defended its decision to end its commitment to offer its staff a Real Living Wage due to the financial pressures it is facing.
The charity revealed the axing of the pledge in its latest Impact Report.
This said “we aspire to consider Living Wage Foundation recommendations to support fair pay that reflects the cost of living” and that the charity had been aligned with its real Living Wage last year.
But it has “recently moved away from this due to the pressures on our income and affordability”.
A spokesperson for The Children's Society defended the move saying the charity continues to be “committed to paying our staff fairly”.
They added that moving away from offering a Real Living Wage “wasn’t an easy decision” but had been made as it “had to weigh it against keeping the charity sustainable so we can continue supporting children and young people”.
The spokesperson added: “We’ll keep this under review and aim to reconsider Living Wage Foundation recommendations in future."
According to the Living Wage Foundation the current Real Living Wage is £13.45 while in London it is £14.80. One in seven employees in the UK work for a Living Wage employer, according to the Foundation.
Its impact report added that the charities “biggest item of expenditure is staff costs”, which increased by 4% year-on year to from £28.91m to £30.02m over the last year.
This was due to a “combination of increased headcount and an increase in staffing costs. Staffing costs increased due to an annual increment in staff salaries, in line with our pay policy and the organisation’s commitment to paying the real living wage”.
According to the Charity Register the Children’s Society has more than 850 employers, 30 of which are paid more than £60,000, including five whose salaries exceed £100,000.
Over the last two years its spending has exceeded its income by around £4m each year.
Its spending in the 12 months to March 2024 was £40.90m, while its income over this period was £36.48.
In the 12 months to March 2025, it spent £44.28m and its income was £40.64m.
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