The Living Wage Foundation has increased its real living wage rates to £10.90 an hour across the UK and £11.95 an hour in London.
This is a £1 and 90 pence rise, respectively, and will see almost 400,000 employees working for more than 11,000 accredited employers across the country receive a pay boost, according to the foundation.
The updated rates are both higher than the government’s current minimum wage for staff aged 23 and above of £9.50. A full-time worker earning the real living wage could therefore earn £2,730 more per year than on the government minimum, and £1,950 more than the previous real living rate. A full-time employee in London on the new rate is entitled to an additional £4,777.50 a year compared with those on the government minimum wage.
According to the foundation, this year’s increase was brought forward in recognition of the sharp rise in living costs. The rate rose by 10.1% this year, which is the highest increase in its 11-year history.
Katherine Chapman, director of the Living Wage Foundation, said: “With living costs rising so rapidly, millions are facing an awful heat or eat choice this winter. That’s why a real living wage is more vital than ever. These new rates will provide hundreds of thousands of workers and their families with greater security and stability during these incredibly difficult times. We know that the living wage is good for employers as well as workers, that’s why the real living wage must continue to be at the heart of solutions to tackle the cost-of-living crisis.”
Charles Cotton, senior reward adviser for the Chartered Institute of Personnel and Development, added: “This is a significant increase to the real living wage and shows the importance of fair pay and good work for UK workers. While the increase in the real living wage will be welcome by thousands of low-waged workers, it may not be enough to improve financial conditions for some of the lowest paid employees, in the current cost of living crisis.”