The Living Wage Foundation has announced a 6.7% (+85p) rise in real Living Wage rates to £13.45 an hour across the UK.
In London, the real Living Wage rate will go up 6.9% (+95p) to £14.80 an hour.
Katherine Chapman, Executive Director of the Living Wage Foundation, said:
“The new rates announced today will make a massive difference to workers and their families, helping them to better cope with the costs of rent, bills, food and other essentials, and to live with stability and security.
“It remains a tough time for low-paid workers, with 4.5 million people still earning less than the real Living Wage and struggling to escape the grip of in-work poverty. That’s why we encourage as many employers as possible to do the right thing and commit to paying a wage that reflects the real cost of living.
“Despite the challenges businesses face, our movement continues to grow, with over 16,000 employers now accredited. These leading employers are showing that paying the real Living Wage has a far-reaching impact on staff, businesses and society.”
Retail trade union Usdaw has welcomed the increase, and wants more progress to be made.
Joanne Thomas, Usdaw General Secretary, said:
“The new real Living Wage rates are a welcome boost for the lowest-paid workers. On taking power, Labour changed the remit of the Low Pay Commission, so that they take account of the cost of living and work towards ending rip-off youth rates. We call on the Government to again announce a substantial increase in statutory rates to help close the gap with the real Living Wage. Usdaw is calling for a clear path towards £15 per hour for all workers aged over 18, and we call on employers to take notice of the new rates and negotiate increases in their base pay to reflect the cost of living.
“Labour is delivering the new deal for workers that Usdaw long campaigned for. The Employment Rights Bill, currently in its final parliamentary stages, will help secure economic growth by improving productivity and stop rogue employers undercutting those who treat their staff properly, while giving workers security, respect and the decency of an income they can live on. These protections for workers are the transformational changes that the country voted for, after 14 years of Tory chaos, austerity and attacks on workers’ rights.”
