The UK’s living wage rate, as championed by the Living Wage Foundation campaign, is to rise by 20p an hour.
The new rate is rising from its current £8.25 per hour to £8.45. For London dwellers, the rate will increase by 35p to £9.75 per hour from the original £9.40.
The living wage rate is separate from the government’s compulsory National Living Wage of £7.20 for adults over 25-years-old. The national rate was introduced by former Chancellor George Osborne in April this year. The key difference between the two, beyond the different rates, is the fact that the voluntary living wage is available to all workers over 18.
Mayor of London Sadiq Khan announced the new London living wage rate yesterday at the British Library. He stressed that “paying the London Living Wage is not just the right and moral thing to do, it makes good business sense too.”
“Our economy continues to grow and for the first time in London’s history we now have over one million businesses based here. It’s essential that hard-working Londoners, who keep this city going, are rewarded for their integral role in this success.
It looks like the mayor might be right. The Living Wage Foundation’s business case states that living wage employers have reported a 25% reduction in staff turnover. Beyond that, 80% of living wage employers have seen improvements in staff performance, and 70% report improved brand consumer awareness.
Katherine Chapman, Director of the Living Wage Foundation, says it’s “more important than ever for leading employers to join the growing movement of businesses and organisations that are going further than the government minimum.”
“[They need to make] sure their employees earn enough to cover the cost of living.”
The total number of accredited Living Wage organisations now stands at nearly 3,000. Companies signed up to the scheme include the British Library, law firm DLA Piper International, IKEA, National Express and EDF Energy.
You can find the full list of accredited living wage employers on the Living Wage Foundation website.
Feature Image © Living Wage Foundation