Employee Benefits poll: Almost half (45%) of organisations think the new real living wage rates of at least £12 per hour go far enough to support employees, according to a survey of Employee Benefits readers.
One-third (35%) said they did not think the new real living wage rates go far enough to support employees, whereas 20% were unsure.
In October, the Living Wage Foundation announced new living wage rates for London and across the UK to provide those employed at living wage accredited employers with a cost-of-living pay boost.
The foundation independently calculates the rates, which apply to everyone over the age of 18, based on what people need to live on. This year the rate increased by 10% to reflect high costs for low-paid workers. The London rate rose by £1.20 to £13.15 an hour, while the UK-wide one increased by £1.10 to £12 an hour.
As per the increase, a full-time worker receiving the new living wage would earn £3,081 a year more than someone earning the current government minimum wage for those aged 23 and above, which currently stands at £10.42, and £2,145 more than their current pay. In London, a full-time employee on the new rate would earn an additional £5,323.50 a year compared to one on minimum wage, which is due to rise to at least £11 an hour in April next year.
Katherine Chapman, director at the Living Wage Foundation, said: “As inflation eases, we cannot forget that low-paid workers remain at the sharp end of the cost-of-living crisis. These new real living wage rates are a lifeline for the 460,000 workers who will get a pay rise.”