The Living Wage Foundation has announced new living wage rates for London and across the UK in order to provide a cost-of-living pay boost.
The foundation independently calculates the rates based on what people need to live on and applies to everyone over 18. 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.
A full-time worker earning the new living wage would earn £3,081 a year more than a one 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 from April 2024.
According to the foundation, there are now 14,000 UK living wage employers and more than 100 living hours employers, which provide a guaranteed minimum of 16 hours of work a week, a month’s notice of shift patterns and a contract that reflects hours worked.
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.
“During these tough economic times, it is heartening that record numbers of employers are signing up to join the living wage movement, protecting everyone who works for them from rising prices and seeing the benefits of a more motivated and engaged workforce. The real living wage has never been more important and we encourage those who can to join the employers across the UK who are committed to always pay a wage that covers the cost of living.”