Real living wage increases to £12 in UK today

Over 460,000 people working for 14,000 real Living Wage Employers across the UK will receive a pay boost as Living Wage rates rise to £12/hour, up £1.10.

The real Living Wage, set by the Living Wage Foundation, is the only wage rates independently calculated based on what people need to live on.

This year the rate increased by 10% in the UK, reflecting persistently high costs for low paid workers.

Recent research by the Living Wage Foundation shows that despite inflation easing, the cost-of-living crisis is far from over for Britain’s 3.5m low paid workers.

Recent polling of those earning below the real Living Wage found that 60% have visited a food bank in the past year and 39% regularly skipping meals for financial reasons.

The real Living Wage vs the ‘National Living Wage’ – the difference

Unlike the Government minimum wage (‘National Living Wage’ for over 23s – £10.42) the real Living Wage is the only wage rate independently calculated based on rising living costs and applies to everyone over 18.

A full-time worker earning the new, real Living Wage would earn £3,081 a year more than a worker earning the current government minimum (NLW), and £2,145 more than their current pay.

Low pay

There are 3.5m jobs (12.2% of employee jobs, or 1 in 8 jobs) paid less than the real Living Wage.

According to Living Wage Foundation projections, the scale of low pay is predicted to increase to 4.3m (15.7% of jobs) in 2023.

Recent research published by the Living Wage Foundation found that despite easing inflation, the cost of living crisis is far from over for low paid workers, with 50% worse off than a year ago. 43% of low paid workers reported regularly using a foodbank – at least once per month – 60% have used a foodbank in the past year and 39% reported falling behind on household bills.

The Living Wage movement continues to grow

In the past two years record numbers of employers have signed up to pay the real Living Wage, including to their third party contractors like cleaners and security guards, with 1 in 9 employees now working for an accredited Living Wage Employer.

There are now 14,000 Living Wage Employers, including half of the FTSE 100 companies and household names like Aviva, Everton FC, IKEA and LUSH, as well as thousands of small businesses, who are choosing to pay the real Living Wage to provide workers and families with greater security and stability.

There are now also over 100 Living Hours employers, including abrdn, Aviva, and West Brom Building Society, going beyond payment of the real Living Wage to also provide a guaranteed minimum of 16 hours work a week, a month’s notice of shift patterns and a contract that reflects hours worked.

Katherine Chapman, Living Wage Foundation Director, said:

“As inflation eases, we cannot forget that low paid workers remain at the sharp end of the cost of living crisis. ow paid workers continue to struggle with stubbornly high prices because they spend a larger share of their budget on food and energy. 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 – including cleaners -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 14,000 Living Wage employers across the UK who are committed to always pay a wage that covers the cost of living.”

Echoing these sentiments, the Archbishop of York, the Rt Revd Stephen Cottrell, highlights the Living Wage campaign as a beacon of hope for workers, while Kristina Maculska, a real Living Wage earner, shares how the rate rise significantly benefits her life, especially amidst the high cost of living in London.