The Real Living Wage will rise by 60p to £12.60 an hour across the UK and by 70p to £13.85 in London for workers at more than 15,000 employers
Nearly half a million workers earning the voluntary so-called Real Living Wage are in line for a salary increase as rates have been set to rise. Announced increases will see wages climb by 60p to £12.60 an hour across the UK and by 70p to £13.85 in London for employees at over 15,000 employers.
This voluntary rate is notably higher compared to the statutory minimum wage of £11.44 an hour for those aged over 21, and £8.60 for 18 to 20 year olds. Workers on this new Real Living Wage could earn an extra £2,262 annually than those on the current government minimum, the Living Wage Foundation suggests.
Over the past three years, a record number of employers have committed to the Real Living Wage, extending it to third-party staff such as cleaners and security guards, with now one in nine workers employed by an accredited living wage firm. Katherine Chapman, director of the Living Wage Foundation, commented on the impact of the pay increase: “Low-paid workers have been hardest hit by the cost-of-living crisis and are still struggling to stay afloat amidst persistently high prices.”
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She added, “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.”
Darren Taylor, country people and culture manager at furniture giant Ikea, expressed his support for the living wage movement: “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 employers, with half of them signing up since 2021.”
He further highlighted Ikea’s commitment to its staff: “A business’s success is purely driven by its people, and as a values-driven company we care about our co-workers and their wellbeing. That’s why we’re committed to pay our co-workers a Real Living Wage that creates a fairer, inclusive and healthier standard of living for the many.”
“We hope this year’s uplift, along with our enhanced flexibility and benefits offer, will provide co-workers’ with greater financial stability and the support needed to live a better everyday life.”
Employers who have pledged to the living wage are reminded they have until May 1 to implement the increased rates but are encouraged to do so as swiftly as possible.
Paddy Lillis, general secretary of the shop workers union Usdaw, also weighed in on the issue: “The new Real Living Wage rates, which are based on the cost of living, are welcome and clearly show that the Tories’ so-called National Living Wage is nothing of the sort.”
“We call on employers to take notice of the new rates and negotiate increases in their base pay to reflect the cost of living.”
