Nearly 500,000 UK workers are set to receive a wage increase following the announcement of the new Real Living Wage. The increase will see wages rise by 60p, bringing the hourly rate to £12.60 across the UK, with a higher 70p increase in London to £13.85. This change, impacting staff at over 15,000 employers, highlights the growing importance of fair compensation amidst the ongoing cost-of-living crisis.
The Real Living Wage is a voluntary wage standard that far surpasses the government’s statutory national minimum wage, which currently stands at £11.44 for workers aged 21 and over and £8.60 for those between 18 and 20. The Living Wage Foundation, which oversees the Real Living Wage, emphasizes the significance of this increase, stating that full-time workers on the new rate will earn an additional £2,262 annually compared to those on the government-mandated minimum wage.
A Record Number of Employers Adopting the Real Living Wage
In recent years, there has been a significant rise in the number of employers committing to pay the Real Living Wage. Currently, one in nine employees in the UK works for an accredited Living Wage employer. This commitment has extended beyond internal staff, influencing payments to third-party contractors and contributing to a fairer workplace environment.
Katherine Chapman, director of the Living Wage Foundation, stressed the importance of this development:
“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 also pointed out the challenging economic climate for businesses but noted that it was heartening to see the living wage movement continue to grow. “This year we reached the major milestone of 15,000 accredited employers, with half of them signing up since 2021.”
Businesses Highlight Benefits of Fair Pay
Companies like Ikea, Tesco’s, Aldi and Amazon have long been champions of the Real Living Wage, and this latest increase reinforces their commitment to employee welfare. Darren Taylor, country people and culture manager at Ikea, shared his thoughts:
“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.”
Ikea’s approach, which combines fair pay with enhanced workers flexibility and other benefits, aims to offer their employees greater financial stability and improved living standards. This focus on employee welfare is a growing trend among accredited employers, as they recognize that investing in staff is key to long-term success.
Employers Urged to Implement Wage Increase Promptly
Employers who have pledged to the Real Living Wage have until May 1st to implement the new rates, but they are being urged to do so as soon as possible to provide immediate relief to low paid workers. With inflation still a major concern, the increased wages are expected to provide crucial support to employees who are grappling with rising household expenses.
The Workers Union Says…
“As the living wage movement continues to grow, it’s clear that more businesses are recognizing the importance of paying their staff a wage that reflects the true cost of living. The Workers Union believes this trend is a positive step toward creating a fairer and more inclusive economy for all.”
