500,000 UK workers to see real living wage pay rise up to £14.80 per hour

Nearly half a million people are set to receive a pay boost as Real Living Wage rates rise across the country. Workers in London whose employers are part of the scheme will see their hourly rate rise to £14.80, reflecting a 95p increase, while workers across the wider UK will see their hourly rate rise to £13.45, marking an 85p increase. The pay increase comes into effect from today.

The real Living Wage is different to the Government's statutory minimum wage rate, which is called the 'National Living Wage' for those over the age of 21. The Government's rate is the legal minimum businesses are required to pay by law. The Real Living Wage is independently calculated by the Resolution Foundation based on what is needed to cover the current cost of living as well as emergency purchases. This rate is higher, and employers voluntarily opt into paying it. Katherine Chapman, executive director of the Living Wage Foundation, said: "We all need a wage that covers life's essentials, and the real Living Wage is the only UK wage rate independently calculated based solely on what is needed to cover rising living costs.

"The new rates announced today will make a massive difference to workers and their families, helping them to better cope with the costs of rent, bills, food and other essentials, and to live with stability and security."

The real Living Wage applies to all workers over the age of 18 working for a Living Wage Employer.

The National Living Wage, which is Government-set and applies to those over 21, is £12.21 an hour.

According to the Living Wage Foundation, a full-time worker earning the new Real Living Wage would earn £2,418 a year more than a worker earning the current Government minimum. In London, a full-time worker on the new Real Living Wage rate would earn an additional £5,050 a year compared to a worker on the current NLW.

The Living Wage Foundation said the number of employers signed up to the scheme has continued to grow despite "economic challenges", with nearly 2,500 new accreditations over the past year.

Living Wage Employers commit to paying all their staff, as well as their third-party contractors such as cleaners and security guards, at least the real Living Wage.

There are now more than 16,000 Living Wage Employers across the UK, with recent accreditations including Uniqlo, the University of Salford and Truro City Council. They join half of the FTSE 100 companies, household names like Aviva, Everton FC and IKEA, as well as thousands of small businesses, who are choosing to pay the higher rate.

Ms Chapman added: "It remains a tough time for low-paid workers, with 4.5 million people still earning less than the real Living Wage and struggling to escape the grip of in-work poverty. That's why we encourage as many employers as possible to do the right thing and commit to paying a wage that reflects the real cost of living."

Alessandro Dudech, UNIQLO UK COO, said: "UNIQLO is delighted to be accredited by the Living Wage Foundation in the UK. We believe that ensuring our employees are fairly compensated for their hard work is essential for fostering a motivated and productive workforce.

"UNIQLO's investment in our UK team is in line with our ambitious growth plan here, enabling us to be an attractive employer of choice. We are proud to join the ranks of other responsible employers who are leading the way in promoting fair pay and improving the quality of life for their employees."

Matt Sparkes, sustainability director at global law firm Linklaters, said: "We've paid the Real Living Wage for over a decade and we still hear from our people of the pride that it brings and the difference that it makes. Now, more than ever, it demonstrates a tangible commitment to fairness, respect and doing what is right."

Francesca Small, head of people at food manufacturer Love Joes in Walsall, said: "The rise to the real Living Wage will be a lifeline for our greatest asset: our people. Low pay is the norm in our industry, so we're proud to stand out as a company that puts its people first by paying a wage which means they can live with dignity.

"We've seen incredible results since becoming an accredited Living Wage Employer, including turnover dropping from 60% to 27% and many more people applying for jobs at Love Joes.

"In just one weekend over 500 people applied for one production role. It's been such a good investment that we're now signed up as a Living Hours Employer so everyone at Love Joes also has working hours they can rely on. We're a family-run business who will always look after our people, because only together can we grow and thrive."

Adrian Mayo, production packing operative at food manufacturer Love Joes, added: "Today's rise is great news for me and my family.

"I spent years in low paid jobs, desperate to move out of my parents' house and into my own place. Within months of working at Love Joes, I was able to make that a reality. Not only are we now settled in a lovely home, the extra money the real Living Wage provides means I can afford to treat my family now and then too. We live a happy life without having to worry about money. I'm so grateful Love Joes support me with a real Living Wage and hope to work here for many years to come."

Brett Mendell, Managing Director at textile manufacturer Thomas Kneale & Co in Manchester, said: "We welcome the rise to the real Living Wage because it will make a massive difference to our colleagues. Paying a decent wage which meets living costs is the foundation of any good business."