Speaking at the CBI annual conference in London, Sentamu, who is chair of the Living Wage Commission, said Britain risked “becoming a place where the haves and the have-nots live in parallel worlds”.
He said rising numbers of working households living in poverty showed clearly that the minimum wage is “inadequate”.
Sentamu urged business leaders to support the Living Wage Foundation’s aim to lift one million people out of low pay.
“Income inequality is the giant we must all slay,” he said. “Don’t go where the path leads – blaze a trail that others can follow.”
He added that most businesses “can afford to pay the Living Wage and… should just get on with it”. To achieve this, he suggested business leaders give up their bonuses or pay rises to distribute money more fairly throughout organisations.
Speaking on a panel with Sentamu, brewer Adnam’s CEO Andy Wood said leaders in his business were redirecting some of their bonuses to the lowest paid in the organisation. He added that the company is committed to paying the Living Wage within two years.
“Business leaders are in a position to make sure this recovery is felt by all,” he said.
Both Sentamu and Wood called on government to introduce tax credits to encourage businesses to do the right thing.
Services provider Mitie CEO Ruby McGregor-Smith urged the government to rethink its procurement methodology.
“It’s all about the price [when bidding for contracts],” she said. “There’s no interest in corporate responsibility or how much people get paid.”
