Great news for low-paid workers in the UK
Almost half a million employees in the UK are set to receive a pay rise as the real living wage in the country increases by close to 7%.
The real living wage will rise by 6.7% to £13.45 per hour across the UK and by 6.9% or £14.80 per hour in London.
Unlike the national living wage, which is the statutory minimum any company in the UK is allowed to pay its employees, the real living wage is a higher, voluntary rate calculated based on what UK employees need to cover living costs.
It applies to all workers over the age of 18 working for an employer that has opted into the scheme. The national living wage only applies to workers who are over the age of 21 and is worth just £12.21 per hour.
As a result of this rate increase, a full-time worker who earns the real living wage would earn £2,418 a year more than a worker earning the statutory minimum. In London, the worker would earn £5,050 more per year than to a worker on the current national living wage.
The Living Wage Foundation said that more than 16,000 employers in the UK are signed up to pay the real living wage, which means that up to half a million low-paid workers across the country are set for a pay boost.
Research by the foundation found that one in seven employees across the UK now work for a living wage-accredited employer, the list of which includes half of the FTSE 100 companies, thousands of small businesses, and various councils and universities.
Katherine Chapman, Executive Director of the Living Wage Foundation, said:
“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,” said Living Wage Foundation executive director Katherine Chapman.
“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,” Chapman said.
