Nearly half a million workers receiving the voluntary Real Living Wage are poised for a pay boost following the announcement of an increase in rates.
The Real Living Wage will jump by 60p to £12.60 per hour across the UK and by 70p to £13.85 in London, impacting employees at over 15,000 companies.
This voluntary rate stands in contrast to the statutory minimum wage of £11.44 for those aged over 21 and £8.60 for individuals aged 18 to 20.
Workers on the new Real Living Wage can expect to earn an additional £2,262 annually compared to those on the current national minimum, as per the Living Wage Foundation’s data.
In recent years, a record number of employers have committed to the Real Living Wage, extending it to third-party staff such as cleaners and security personnel, with one in nine workers now employed by an accredited living wage firm.
Katherine Chapman, director of the Living Wage Foundation, commented: “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.”
She added: “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.”
Darren Taylor, the country people and culture manager at Ikea, commented on the importance of these wages, saying: “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 are signed up have until the deadline of May 1 to pay the increased rates but are encouraged to pay it as soon as possible. A full list of employers signed up for the scheme can be found on the Living Wage Foundation website.
Paddy Lillis, general secretary of the shop workers union Usdaw, said: “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.”
