Increased Living Wage rate announced

Nick Elvin

Accredited Living Wage employers are to pay their staff at least £8.25 per hour, rising from £7.85, the Living Wage Foundation has announced.

The new voluntary UK Living Wage rate is significantly higher than the national minimum wage of £6.70 per hour, and the new minimum wage premium for over 25s of £7.20 per hour that will come into force across the country in April 2016.

The Living Wage Foundation says there are now more than 2,000 accredited Living Wage employers across the UK – double the number in November 2014, resulting in a pay rise for approximately 68,000 staff.

Meanwhile, London mayor Boris Johnson has announced an increase in the London Living Wage, from £9.15 to £9.40 per hour, a rise of 2.7%. The mayor also revealed the number of employers now paying their staff the London Living Wage has grown from 429 to 724 in the last 12 months.

Sarah Vero, director at the Living Wage Foundation, said: “The Living Wage campaign is growing at pace. More UK businesses are announcing their Living Wage accreditation including national retailer Richer Sounds, Lloyds Banking Group and Unilever. They join a growing list of organisations ranging from FTSE 100 companies to independent businesses, SMEs and third-sector employers who all share our belief that work should be the surest way out of poverty. The Living Wage is good for people and for business.”

The announcement of the increase in the UK Living Wage comes shortly after the publication of research by KPMG showing that 5.84 million people are paid less than the Living Wage. This means 23% of all employees now earn less than the Living Wage – up from 22% last year and 21% the year before.

Frances O’Grady, TUC general secretary said: “It’s good news that the number of Living Wage employers is growing. It’s a basic standard many more employers should meet. But six million people are still scraping by on less than the Living Wage, despite many working for employers who could afford to pay it. Joining a union is the best way for workers to win decent wages they can actually live on.”