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UK cleaning company becomes Living Pension employer
18th of February 2025 Article by Charlie Walker
Social enterprise cleaning business Clean for Good, based in London, was established seven years ago with the objective of offering a fair deal for cleaners and driving change in the sector. Its managing director Charlie Walker tells us why the company has now become a Living Pension Employer.
The Living Pension is a new Living Wage Foundation accreditation for employers who want to help workers boost their pension pots. Last week Clean for Good became the first UK cleaning business to be accredited as a Living Pension Employer.
The Living Pension is a voluntary savings target for employers who want to help workers, especially those on low pay, build up a pension pot that will provide enough income to meet basic everyday needs in retirement. It launched in March 2023.
A Living Pension Employer must meet a pension savings target of 12 per cent of a full time Living Wage worker's salary, including a minimum seven per cent employer contribution. Clean for Good is providing an eight per cent employer contribution, asking employees to provide just four per cent, delivering a dignified pension at a low cost to employees. The scheme is voluntary for employees, who can opt in if they wish to benefit.
The Living Pension builds on auto-enrolment, which requires a minimum eight per cent pension savings, with employers contributing at least three per cent and workers paying the remaining five per cent. (The Living Pension savings target can also be met as a cash amount of £2,950 a year, to which the employer must contribute at least £1,720).
The rise in UK Employer National Insurance contributions from April 2025 will undoubtedly increase costs for business, especially for companies such as cleaning service providers. Yet we believe that continuing to invest in our people is the best way to improve our services to customers.
Clean for Good pays the Living Wage, offers occupational Sick Pay and now a Living Pension - because we believe that what is good for workers can be good for business.
• Launched in 2017, Clean for Good has an annual turnover of £1.2 milion and employs 75 cleaners.
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