45% of employers think the new living wage rate is enough

living wage ratesEmployee 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.

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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.”