Pay rise for workers on voluntary Real Living Wage

Pay rise for workers on voluntary Real Living Wage
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Peninsula Team, Peninsula Team

(Last updated )

Over 460,000 people working for 14,000 Real Living Wage employers throughout the country are set for a cost-of-living pay boost, as the Living Wage Foundation’s (LWF’s) rates rise to £13.15 an hour in London (£1.20 increase) and £12 an hour across the rest of the UK (£1.10 increase).

Set by the LWF, the Real Living Wage remains the only rate independently calculated and based on what people need to live on. This year the rate increased by 10% in the UK, reflecting persistently high costs for low-paid workers.

Recent research by the Foundation shows that, despite inflation easing, the cost-of-living crisis is far from over for Britain’s 3.5 million workers who fall into the low pay category.

This year’s polling shows that 50% of workers are worse off than a year ago, with 65% reporting it was because of the increased cost-of-living.

Of those earning below the Real Living Wage, 60% have visited a food bank in the past year and 39% have regularly skipped meals for financial reasons. According to LWF projections, the scale of low pay is predicted to increase to 4.3 million (15.7% of jobs) in 2023.

A full-time worker earning the new Real Living Wage would earn £3081 a year more than a worker earning the current government minimum (the National Living Wage (NLW)) and £2145 more than their current pay.

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In London, a full-time worker on the new Real Living Wage rate would earn an additional £5323.50 a year compared to a worker on the current NLW.

In the past two years, record numbers of employers have signed up to pay the Real Living Wage, including to their third-party contractors such as cleaners and security guards, with one in nine employees now working for an accredited Living Wage employer.

There are now 14,000 Living Wage employers, including half of the FTSE 100 companies and household names including Aviva, Everton FC, IKEA and LUSH, as well as thousands of small businesses, who are choosing to pay the Real Living Wage to provide workers and families with greater security and stability.

In addition, over 100 Living Hours employers, including abrdn, Aviva, and West Brom Building Society, also provide a guaranteed minimum of 16 hours work a week, a month’s notice of shift patterns and a contract that reflects hours worked.

For answers to questions on minimum wages, visit BrAInbox today where you can find answers to questions like When do I have to start paying the higher real living wage rate?

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