Almost half a million people working for more than 16,000 real Living Wage Employers throughout the country are set for a vital pay boost, as the real Living Wage rates rise to £13.45 an hour across the UK (85p or 6.7% increase), and £14.80 an hour in London (95p or 6.9% increase).  

Recent research by the Living Wage Foundation shows that as inflation grew over the past year, many of Britain’s 4.5m low-paid workers have struggled to make ends meet, with two in five (42%) having been forced to use foodbanks in the past year, rising to over half (56%) for low-paid workers with dependent children.

 

Real Living Wage vs ‘National Living Wage’

The real Living Wage is different to the government’s statutory minimum wage rate, which is called the ‘National Living Wage’ for those over the age of 21. The real Living Wage is a higher, voluntary rate that is independently calculated based solely on what is needed to cover living costs, including everyday household costs such as rent and energy bills, childcare and transport, as well as items like a warm winter coat for children, or savings for a financial emergency like a broken boiler. The Government’s rate is the legal minimum businesses are required to pay by law.

The real Living Wage applies to all workers over the age of 18 working for a Living Wage Employer and is £13.45 an hour across the UK and £14.80 an hour in London. The National Living Wage applies to those over the age of 21 and is worth £12.21 an hour.

A full-time worker earning the new, real Living Wage would earn £2,418 a year more than a worker earning the current government minimum. In London, a full-time worker on the new real Living Wage rate would earn an additional £5,050 a year compared to a worker on the current NLW.

 

The Living Wage movement continues to grow 

Despite economic challenges in the UK, the number of employers signed up to pay the real Living Wage has continued to grow, with nearly 2,500 new accreditations over the past year. Living Wage Employers commit to paying all their staff, as well as their third-party contractors like cleaners and security guards, at least the real Living Wage. Across the UK, 1 in 7 employees now work for an accredited Living Wage Employer.

There are now over 16,000 Living Wage Employers, 250 Living Hours Employers, and nearly 90 Living Pension employers.

 

Katherine Chapman, Executive Director of the Living Wage Foundation, said: 

“We all need a wage that covers life’s essentials, and the real Living Wage is the only UK wage rate independently calculated based solely on what is needed to cover rising living costs. The new rates announced today will make a massive difference to workers and their families, helping them to better cope with the costs of rent, bills, food and other essentials, and to live with stability and security.

“It remains a tough time for low-paid workers, with 4.5 million people still earning less than the real Living Wage and struggling to escape the grip of in-work poverty. That’s why we encourage as many employers as possible to do the right thing and commit to paying a wage that reflects the real cost of living.

“Despite the challenges businesses face, our movement continues to grow, with over 16,000 employers now accredited. These leading employers are showing that paying the real Living Wage has a far-reaching impact on staff, businesses and society.”

Read the full article: Living Wage Foundation