The Living Wage Foundation has increased the Living Wage by 3.6% to £8.75 an hour, or for those working in London, a rise of 4.6% to £10.20 an hour.
At least 150,000 workers are set to benefit from the raise, which is independently calculated based on the real cost of living. The increase has largely been driven by higher inflation feeding through to the cost of basket goods and services, as well as rising private rents and transport costs.
Paying the Living Wage is a voluntary commitment that more than 3,600 UK employers have undertaken. The rate is higher than both the National Minimum Wage and the National Living Wage, and is calculated annually by the Resolution Foundation and overseen by the Living Wage Commission.
The new rate follows research published by KPMG which revealed that, 5.5 million people across the UK are still paid below the real Living Wage. That equates to one in five workers, or 21% of the UK workforce.
Living Wage Foundation Director, Katherine Chapman, said: ‘Great businesses know that, even during these tough times, not only is fair pay the right thing to do but paying the real Living Wage brings big benefits. Nine out of 10 accredited Living Wage employers report real benefits including improved retention, reputation, recruitment and staff motivation.’
More than 3,600 organisations are now signed up as Living Wage employers, including a third of the FTSE 100 and household names such as Ikea, Aviva, Nationwide, Chelsea and Everton Football Clubs.
