390,000 workers up and down the country are set to benefit from an increase in the Real Living Wage.
The voluntary payments will rise to £10.90 per hour across the country and £11.95 in London – an increase of £1 and 90p respectively.
The living wage is calculated by looking at the income people need to be able to live. It is different from the National Minimum Wage, which is set by government. The rate is worked out by the Living Wage Foundation (LWF), which offers employers the chance to sign up to pay their staff more than the statutory minimum amount per hour.
The rates are expected to benefit full-time workers in the UK by £2,700 more than people who receive the National Minimum Wage. Moreover, workers in London will be almost £5,000 a year better off than workers on the National Minimum Wage.
So far, 11,000 companies have accessed the scheme, with big names such as the Royal Albert Hall and the ExCel Centre joining FTSE 100 companies like Aviva and IKEA in making the voluntary payments.
The director of the foundation, Katherine Chapman, said: ‘Today’s new rates will provide hundreds of thousands of workers and their families with greater security and stability during these incredibly difficult times.
‘We are facing unprecedented challenges with the cost-of-living crisis, but businesses continue to step up and support workers by signing up to the Living Wage in record numbers. We know that the Living Wage is good for employers as well as workers, that’s why the real living wage must continue to be at the heart of solutions to tackle the cost-of-living crisis.’
The Workers Union Says…
This organisation has long championed the cause of the Real Living Wage and will continue to do so. While we appreciate the role that politicians play in setting economic conditions, company chiefs cannot escape their moral responsibility to pay staff more than subsistence wages.
To that end, we need to see more companies joining this scheme. With inflation running at a 40-year high of 10 percent, affirmative action should cascade from boardroom to staff room. And while it will not be possible for every business to pay more, those with deep pockets must find the bravery and compassion to help working people overcome the effects of this period and move forward in a spirit of optimism.