Cardiff Council’s multi-stakeholder work around a Real Living Wage City has boosted the economy and uplifted thousands of people. 

The Well-being of Future Generations Act’s goal around a Prosperous Wales is working to ensure we achieve a productive and low carbon society which uses resources efficiently, develops a skilled and well-educated population and secures fair work for people.  

But with wages that aren’t keeping up with the increasing cost of living, and high rates of poverty, more and more people are losing out.  

The challenges:

• One third of the people in Wales are earning less than the Real Living Wage, the lowest in a decade.
• 29% of children in Wales live in poverty and 21% of people in Wales lived in relative income poverty in 2023.
• Black, Asian and Minority Ethnic employees earned, on average £1.93 (13.8%) less per hour than White employees in 2023.

A Living Wage City 

Cardiff Council has developed a multi-stakeholder campaign to increase Living Wage accreditation – becoming the second city in the UK to achieve Living Wage City status.

This work has generated a £65 million boost to the local economy and ensured 13,000 people have been uplifted to a Real Living Wage, helping their incomes keep up with the rising costs of living.  

The Real Living Wage is the only UK wage rate independently calculated based on the actual cost of living, and is currently £12.60 an hour across the UK. 

Ffair Jobs 

Through initiatives like The Ffair Jobs Community Jobs Compact, Cardiff Council works with employers to ensure fair work opportunities in deprived areas. 

Co-produced by employers and communities, The Ffair Jobs Community Jobs Compact commits businesses to: 

• paying the Real Living Wage 

• offering guaranteed interviews 

• eliminating zero-hour contracts 

• ensuring equitable recruitment and career progression opportunities 

Starting with job inequalities in Cardiff, where many residents were in low-paying, unstable work, Ffair Jobs helped employers engage with local communities through workshops and job fairs.  

The initiative gradually gained momentum, securing commitments from high-profile employers including IKEA, ITV Wales, Careers Wales, and the Senedd, and has now empowered thousands of individuals, providing greater financial security and opportunities for personal growth.  

Positively, the initiative has now expanded beyond Cardiff, with similar models emerging in cities like Birmingham, where others are seeking advice from the Welsh model.