[UK] Real Living Wage increases to £12.60 nationwide and £13.85 in London

In the UK, the nearly half a million people working for more than 15,000 real Living Wage Employers nationwide will see a vital cost of living wage hike as real Living Wage rates rise to £12.60 an hour across the UK (a 60p or 5 per cent increase), and £13.85 an hour in London (a 70p or 5.3 per cent increase), Living Wage Foundation reports.

Recent research by the Living Wage Foundation revealed that, despite inflation easing, many of the nation’s 3.7m low-paid workers continue to struggle with the impact of years of high prices.

Forty-two per cent of respondents said they have less than £10 left each week after covering essential expenses, 39 per cent have used a food bank in the past year and 32 per cent have skipped meals for financial reasons. 

The UK now has over 15,000 Living Wage Employers. Recent accreditations reportedly include Pieminister, Fred Perry and the National Theatre, joining FTSE 100 companies and household names such as Aviva, Everton FC, IKEA, Burberry and LUSH and the thousands of small businesses opting to pay the real Living Wage to give workers greater security and stability. 

There are now 180 Living Hours Employers, including abrdn, Aviva, and West Brom Building Society. These companies go further than paying the real Living Wage by also providing a guaranteed minimum of 16 hours of work a week, a month’s notice of shift patterns and a contract reflecting hours worked.  

The Living Wage Foundation says more than 50 employers who want to ensure that workers won’t face poverty in retirement are signed up for the Living Wage Foundation’s Living Pension accreditation, Living Pension Employers provide a Living Pension savings level using either a cash (£2,950) or percentage (12 per cent) target, with a minimum of 7 per cent, or £1,720, contribution coming from the employer.

Katherine Chapman - Living Wage Foundation Director - 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.” 

Darren Taylor - Country People and Culture Manager IKEA UK&IE - said, “A business’ 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.” 

Source: Living Wage Foundation

(Links and quotes via original reporting)

In the UK, the nearly half a million people working for more than 15,000 real Living Wage Employers nationwide will see a vital cost of living wage hike as real Living Wage rates rise to £12.60 an hour across the UK (a 60p or 5 per cent increase), and £13.85 an hour in London (a 70p or 5.3 per cent increase), Living Wage Foundation reports.

Recent research by the Living Wage Foundation revealed that, despite inflation easing, many of the nation’s 3.7m low-paid workers continue to struggle with the impact of years of high prices.

Forty-two per cent of respondents said they have less than £10 left each week after covering essential expenses, 39 per cent have used a food bank in the past year and 32 per cent have skipped meals for financial reasons. 

The UK now has over 15,000 Living Wage Employers. Recent accreditations reportedly include Pieminister, Fred Perry and the National Theatre, joining FTSE 100 companies and household names such as Aviva, Everton FC, IKEA, Burberry and LUSH and the thousands of small businesses opting to pay the real Living Wage to give workers greater security and stability. 

There are now 180 Living Hours Employers, including abrdn, Aviva, and West Brom Building Society. These companies go further than paying the real Living Wage by also providing a guaranteed minimum of 16 hours of work a week, a month’s notice of shift patterns and a contract reflecting hours worked.  

The Living Wage Foundation says more than 50 employers who want to ensure that workers won’t face poverty in retirement are signed up for the Living Wage Foundation’s Living Pension accreditation, Living Pension Employers provide a Living Pension savings level using either a cash (£2,950) or percentage (12 per cent) target, with a minimum of 7 per cent, or £1,720, contribution coming from the employer.

Katherine Chapman - Living Wage Foundation Director - 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.” 

Darren Taylor - Country People and Culture Manager IKEA UK&IE - said, “A business’ 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.” 

Source: Living Wage Foundation

(Links and quotes via original reporting)