The Living Wage Foundation has announced an early increase in the Real Living Wage in response to the sharp increase in living costs over the past year.
Almost 400,000 people whose employers have volunteered to pay the Real Living Wage will see their pay go up by 10.1% — the largest ever year-on-year rise.
Hourly rates are rising by £1 to £10.90 across the UK and by 90p to £11.95 in London.
These rates are higher than the UK government’s National Living Wage — which currently stands at £9.50 an hour for those over 23 — and reflect what the charity thinks people need to earn to cover everyday costs.
A full-time worker on the new Real Living Wage would earn £2,730 a year more than a worker earning the current government minimum, and £1,950 more than their current pay.
The rates were previously due to increase in November.
“With living costs rising so rapidly, millions are facing an awful ‘heat or eat’ choice this winter – that’s why a real Living Wage is more vital than ever,” said Katherine Chapman, Living Wage Foundation director.
“Today’s new rates will provide hundreds of thousands of workers and their families with greater security and stability during these incredibly difficult times.”
Living Wage-accredited employers include Ikea, Aviva, Nationwide and Nestlé as well as thousands of small businesses. The number of employers in the scheme has doubled to 11,000 over the past two years.
