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Living Wage - Living Wage

Living wage increase

The Living Wage Foundation has announced a real living wage increase to £9.30 in the UK and £10.75 in London as the cost of living rises.

Over 210,000 people working for almost 6,000 real Living Wage Employers throughout the country are set for a pay boost as the new Living Wage rates rise to £9.30 across the UK, and £10.75 in London.  

Details of the living wage increase includes:

  • New UK Living Wage hourly rate of £9.30 per hour, an increase of 30p per hour
  • The new London Living Wage is £10.75 per hour, an increase of 20p per hour  
  • The UK rate is £1.09 per hour more than the government minimum wage (for over 25s) and the London Living Wage is £2.54 per hour higher
  • Over 210,000 workers are set for a pay rise, with the difference between the real Living Wage and the minimum wage growing to over £2,000 UK wide and almost £5,000 in London.  
  • New research finds that over £1.1bn in extra wages has gone to low-paid workers because of the Living Wage movement, including £257 million in the last year alone.
  • Analysis from IHS Markit for KPMG finds that 5.2 million workers [1] are still paid under the real Living Wage; the lowest figure for seven years.

A full-time worker paid the £9.30 real Living Wage will receive more than £2,000 in additional wages compared to current Government minimum – equivalent to 9 months of a typical family’s food and drink bill. In London a full time worker will receive £5,000 more per year, equivalent to an average family’s annual food, drink, gas and electric bills.

The Living Wage rates are the only rates independently calculated based on what people need to live on. The London and UK rates are increasing by 20p (1.9%) and 30p (3.3%) respectively, with the single biggest factor explaining why the UK wide rate went up more quickly than the London rate being private rental costs (which rose faster UK wide). Childcare costs also rose at a faster rate outside of London.

The announcement comes as research by KPMG demonstrated the scale of in-work poverty, with 5.2 million jobs still paying less than the real Living Wage. There are big regional disparities, Northern Ireland had the highest percentage of jobs paying below the Living Wage (23%) and South East England the lowest (15%).  

The Living Wage Foundation is calling on all major employers to step up and tackle the rising problem of low pay by committing to go beyond the government minimum and pay a wage in line with the real cost of living.   

Read: Living Wage Foundation - REAL LIVING WAGE INCREASES TO £9.30 IN UK AND £10.75 IN LONDON AS COST OF LIVING RISES