Inflation-busting pay rise announced for 460,000 low-paid workers - see rates

23 October 2023 , 23:01

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Hundreds of thousands of workers, including cleaners, will benefit (Image: Getty Images)

Nearly half a million low-paid workers will get an inflation-busting pay hike as the Living Wage campaign announces its new rates.

More than 460,000 people employed by 14,000 firms will receive a £1.10 an hour increase to £12 across the UK and £13.15 an hour in London - a £1.20 rise - where costs are higher. The increase is 10% - meaning workers will see a real increase because inflation is currently 6.7%.

Workers paid the voluntary Real Living Wage will be £3,000 a year better off compared with those on the Government’s legal minimum rate of £10.42 an hour for workers aged 23 and over. Living Wage Foundation director Katherine Chapman said: “As inflation eases, we cannot forget that low paid workers remain at the sharp end of the cost-of-living crisis. Low-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.”

Katherine Chapman, Director of the Living Wage Foundation, said: 'We cannot forget that low paid workers remain at the sharp end of the cost-of-living crisis'

The Government’s national living wage and minimum wage rates are £10.42 for workers aged 23 and over; £10.18 for those aged 21 and 22; or £7.49 for 18-20 year olds across the UK. Analysts say the Real Living Wage is the only 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 national living wage rate. Ms Chapman added: “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 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.”

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A Real Living Wage worker at the London Stadium, Kristina Maculska, said the higher rate “makes a real difference to me and my family especially when the cost of living is so high”. She added: “The Real Living Wage has a positive impact on my motivation and productivity at work. Additionally, it helps to feel secure about tomorrow and maintain stable mental health, which is important for healthy relationships with colleagues and family.”

Ben Glaze