FIRMS should be required to pay the living wage if they can afford to, according to a new poll by Swindon-based building society Nationwide commissioned to coincide with the first anniversary of the company pledging to pay the living wage to all employees.

The poll found workers thought it was morally the right thing to do and that it would help with employees’ happiness and wellbeing, as well as increasing productivity and morale.

Nationwide became the first major high street name to sign up as a principal partner of the Living Wage Foundation – a commitment to help encourage other firms sign up to the scheme.

The decision means the building society is paying its employees, as well as contractors and apprentices, an hourly wage of at least £7.85, or £9.15 in London, compared to the current UK minimum wage of £6.50. The move saw more than 800 employees and agency workers see their pay increase.

Nationwide director Alison Robb said: “The Living Wage Campaign has real momentum now and Nationwide and fellow Living Wage organisations are encouraging other employers to sign up.

“This poll shows that 58 percent of people would be more likely to use companies which pay their employees the Living Wage showing that as well as being the right thing to do, it also makes business sense.

"The living wage isn’t just about salary increases, it’s about doing the right thing and enacting this principle by paying employees a fair wage for the work they do.”

Nationwide pays its apprentices the living wage which compares to the apprentice national minimum wage of £2.85, which is set to rise to £3.30 in October, but the poll showed 75 per cent of people asked consider this still to be too low.

The survey also found 87 per cent of people think companies should voluntarily pay their employees the living wage if they can afford to.

More than half of those polled stated that they would be more likely to use the goods and services of a company that paid its employees the living wage (58 per cent).

Rhys Moore, director at the Living Wage Foundation, said: “The leadership from Nationwide on the living wage has been very much welcomed.

“The accreditation of Nationwide as a living wage employer a year ago has helped bring the living wage to high streets up and down the country.

“Conversations at local branches and in national boardrooms have been sparked by their commitment to fair pay and the living wage movement.

“With 87 per cent of the public now saying they think that employers who can, should pay the living wage, we’re sure more businesses will follow their lead.”