24 October 2023 , 07:18
1094
0
Almost half a million workers will receive a pay rise from today as the Real Living Wage increases by 10%.
The Living Wage Foundation said its rates will increase from £10.90 to £12 an hour outside of London, and from £11.95 to £13.15 an hour inside the capital. More than 460,000 people working for 14,000 employers are paid the Real Living Wage.
It is a voluntary pay for workers over the age of 18, whose employer is signed up to the Living Wage Foundation. The idea is that the Real Living Wage is based on what a full-time worker and their family needs to make ends meet, including costs of food, clothing and household bills.
It is separate - and higher - than the current National Living Wage, which is currently £10.42 for someone aged 23 and over. The foundation said the 10% rise reflects “persistently high costs” for low-paid workers due to high inflation and the cost of living crisis.
A full-time worker earning the new Real Living Wage will earn £3,081 a year more than someone on the current government minimum, and an additional £5,323 in London, according to the foundation. 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.
Six teachers open up on 'difficult' strike decision - and why they are doing it
“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 rates are a lifeline for the 460,000 workers who will get a pay rise.”
The foundation said record numbers of employers are signing up to pay the voluntary rates. Unison general secretary Christina McAnea said: “This is good news for hundreds of thousands of low-paid workers whose employers do the right thing. That’s pay them a decent wage.
“But many more providing essential public services will miss out. These employees include care workers, who’re often on poverty pay, in a sector already struggling to fill record vacancies.
“Today’s increase means thousands of workers employed by the NHS on the lowest pay bands – like porters, cleaners, domestics and security staff – will be significantly short of the new rate. The Government must follow suit and boost the minimum wage so millions are better able to weather the cost of living pressures causing such deep financial pain.”