Almost 500,000 employees are in line for a salary increase following the announcement of a rise in the Real Living Wage. This wage is a voluntary payment for individuals aged 18 and above employed by companies associated with the Living Wage Foundation. The Real Living Wage is determined based on the cost of essential items such as food, clothing, and household expenses.
The hourly rate is set to increase by 85p to £13.45 in general and by 95p to £14.80 in London, representing a 6.7% and 6.9% increase, respectively, surpassing the minimum wage requirements. The Real Living Wage is applicable to all workers over 18 working for employers adhering to the Real Living Wage principles, with over 16,000 such employers currently registered.
This year’s raise implies that a full-time worker receiving the Real Living Wage will pocket an additional £2,418 annually compared to someone on the minimum wage, or £5,050 more in London. These figures are provided by the Living Wage Foundation, the entity responsible for setting these rates.
Katherine Chapman, the executive director of the Living Wage Foundation, emphasized the importance of a wage that covers essential living expenses, highlighting the positive impact the new rates will have on workers and their families. She encouraged more employers to commit to paying a wage that reflects the true cost of living.
Christina McAnea, Unison’s general secretary, praised the wage increase as a necessary step to prevent workers from falling into poverty. She highlighted the importance of fair employers ensuring their low-paid staff benefit from the raise, while also urging the government to ensure decent pay rates for public service workers. McAnea expressed concern that NHS staff, especially those on lower pay bands like porters and cleaners, might be lured away by higher-paying jobs if their wages do not meet the Real Living Wage standard. She called for government intervention to rectify the situation.
This move signifies a positive step towards combating in-work poverty and ensuring fair compensation for workers across various sectors.
