The voluntary Real Living Wage will increase by 65p to £14.10 per hour across the UK and by 65p to £15.45 in London, a pay rise that will benefit almost half a million people.
The new rates apply to workers at almost 17,000 organisations that pay the Real Living Wage. This year marks the 25th anniversary of the campaign for a ‘real living wage’. Almost £5 billion of pay rises have been granted to low-paid workers over that period, including almost £700 million in the last year alone.
What the increase means for workers
The Living Wage Foundation, which sets the rates, said full-time workers on the Real Living Wage will receive a pay rise worth over £1,250 this year thanks to the increase. Its analysis showed that a full-time worker earning the new Real Living Wage would earn over £2,700 a year more than a worker earning the current national minimum wage of £12.71 for over-21-year-olds.
Campaign anniversary and employer commitments
Emily Sawh, co-director of the Living Wage Foundation, said: “Today’s increase to the Real Living Wage will make a massive difference to hundreds of thousands of workers and their families up and down the country.
“They will be over £1,250 better off this year thanks to the rise, helping them achieve the decent standard of living they need to thrive.
“This year marks the 25th anniversary of the Living Wage campaign, which began as a hopeful idea, driven by low-paid workers in east London organising for decent pay.
“It has grown into one of the most successful campaigns of the 21st century, with nearly 17,000 employers committed to decent pay for all their workers and billions of pounds back in the pockets of those who need it most.
“Despite the Living Wage campaign’s monumental impact on wages in the UK, there are still millions of workers trapped in in-work poverty and struggling every day to make ends meet. They’re forced to skip meals, fall behind on bills and visit foodbanks.
“That’s why we urge employers to do the right thing by signing up to pay the Real Living Wage and providing workers with the decent standard of living they need to thrive.”
More than 2,000 new employers signed up to pay the Real Living Wage over the past year, including Uniqlo, the Department for Business and Trade and Coventry Building Society.
Union response
Unison general secretary Andrea Egan commented: “A real living wage of £14.10 an hour highlights the urgency of the Prime Minister getting to grips with the cost-of-living crisis.
“With essentials such as food and energy set to rise even further, millions of workers need a proper pay increase to take the pressure off.
“Staff, like those in the care sector, need urgent action on poverty pay from the Government.”
