Workers on the Real Living Wage have received a 60p per hour (5%) increase in the UK and a 70p per hour (5.3%) increase in London.
According to the Living Wage Foundation, more than 15,000 Living Wage employers are signed up to pay the new rates.
The new Real Living Wage rates are now worth more than £2,262 more per year in the UK than the legal minimum, and more than £4,700 more in London.
Inflation and high prices
Recent research by the Living Wage Foundation shows that despite inflation easing, many of Britain’s 3.7 million low-paid workers are still struggling with the impact of years of high prices.
Four in 10 (42%) have less than £10 left each week after covering essential expenses, 39% have used a food bank in the past year and 32% have skipped meals for financial reasons.
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The Real Living Wage vs the National Living Wage
The Real Living Wage is different to the Government’s minimum wage rate, which for those over the age of 21 is often called the National Living Wage.
It is a higher, voluntary rate that is independently calculated based solely on the actual cost of living. The Government’s rate is the legal minimum that 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 £12.60 per hour. The National Living Wage applies to those over the age of 21 and is £11.44 per hour.
A full-time worker earning the new Real Living Wage would earn £2,262 per year more than a worker earning the current Government minimum (the National Living Wage), and £1,170 more than their current pay.
In London, a full-time worker on the new Real Living Wage rate would earn an additional £4,700 per year compared to a worker on the current National Living Wage, and £1,365 more than their current pay.
Living Wage employers
There are now more than 15,000 Living Wage employers in the UK, with recent accreditations including Pieminister, Fred Perry and the National Theatre. They join half of the FTSE 100 companies, household names like Aviva, Everton FC, Ikea, Burberry and Lush, and thousands of smaller businesses.
There are now 180 Living Hours employers, including Abrdn, Aviva, and West Brom Building Society, going beyond payment of the Real Living Wage to also provide a guaranteed minimum of 16 hours work per week, a month’s notice of shift patterns and a contract that reflects hours worked.
Katherine Chapman, director of the Living Wage Foundation, said: “Low-paid workers have been hardest hit by the cost-of-living crisis and are still struggling to stay afloat amidst persistently high prices. The Real Living Wage remains the only UK wage rate calculated based on actual living costs, and the new rates announced today will make a massive difference to almost half a million workers who will see their pay increase.
“It’s a challenging time for businesses too, which is why it is so encouraging to see the Living Wage movement continue to grow at pace. This year, we reached the major milestone of 15,000 accredited Living Wage Employers – with half of them signing up since 2021.
“Employers who want to go beyond the Government’s minimum wage and ensure their workers are paid in line with the real cost of living can look to these leading employers and accredit with the Living Wage Foundation.”
