Almost half a million workers are set for a pay rise after it was confirmed the Real Living Wage is set to increase.
The Real Living Wage is a voluntary pay for workers over the age of 18, whose employer is signed up to the Living Wage Foundation. The idea is that the Real Living Wage is based on what a full-time worker and their family needs to make ends meet, including costs of food, clothing and household bills.
The rate will rise by 60p to £12.60 an hour across the UK and by 70p to £13.85 in London. One in nine employees now work for a business that pay the Real Living Wage. It is higher than the statutory National Living Wage wage, which is worth £11.44 an hour for workers over 21 and £8.60 for 18 to 20-year-olds.
A full-time worker earning the new Real Living Wage will earn £2,262 a year more than a worker earning the current government minimum, according to the Living Wage Foundation. Employers who are signed up have until the deadline of May 1 to pay the increased rates but are encouraged to pay it as soon as possible. More than 15,000 employers pay the Real Living Wage, including Aviva, Everton FC, Ikea, Burberry and Lush.
Katherine Chapman, director of the Living Wage Foundation, said: “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.
“It’s a challenging time for businesses too, which is why it is so encouraging to see the living wage movement continue to grow at pace. This year we reached the major milestone of 15,000 accredited employers, with half of them signing up since 2021. Employers who want to go beyond the Government’s minimum wage and ensure their workers are paid in line with the real cost of living can look to these leading employers and accredit with the Living Wage Foundation.”
Darren Taylor, country people and culture manager at furniture retailer Ikea, said: “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. We hope this year’s uplift, along with our enhanced flexibility and benefits offer, will provide co-workers’ with greater financial stability and the support needed to live a better everyday life.”