- 10% increase in the real Living Wage as cost of living continues to hit low paid workers the hardest
- Over 460,000 Living Wage workers are set for a pay boost as 14,000 Living Wage employers are signed up to pay the new rates
- The new real Living Wage rates are now worth over £3,000 more per year in the UK than the minimum wage, and over £5,000 more in London
- £3bn in extra wages has gone to low paid workers since 2011
Over 460,000 people working for 14,000 real Living Wage Employers throughout the country are set for a vital cost-of-living pay boost, as the Living Wage Foundation’s real Living Wage rates rise to £12 an hour across the UK (£1.10 increase), and £13.15 an hour in London (£1.20 increase).
The real Living Wage, set by the Living Wage Foundation, remains 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. In London, a full-time worker on the new real Living Wage rate would earn an additional £5323.50 a year compared to a worker on the current NLW.
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.
Can SD Worx UK payroll support the Living Wage?
The SD Worx UK payroll engine can support the automated application of the real Living Wage.
An employer can confirm they are a living wage employer with the automated application of rates and associated rate rules that automatically uplift on the employers chosen application date.
The SD Worx Academy offers an interactive training course on the real Living Wage:
Need some help
The SD Worx solution offers automated updates of Living Wage and London Living Wage for employers who join the service. Associated alternate rates can also be configured with rate rules. For implementing living wage options please fill in the form below to get in touch and receive a quote.
PSP 24/10/2023 updated 6/11/2023