Almost 500,000 employees are in line for a salary increase following the announcement of a raise in the Real Living Wage.
The Real Living Wage, a voluntary pay standard for workers aged 18 and above employed by Living Wage Foundation members, is designed to cover essential living expenses like food, clothing, and household bills.
The new hourly rates will see an 85p rise to £13.45 per hour, a 6.7% increase, and a 95p increase to £14.80 per hour in London, a 6.9% uptick, surpassing the minimum wage requirements.
Applicable to all workers over 18 at Real Living Wage-compliant companies, which now number over 16,000, the latest increase means a full-time employee earning the Real Living Wage will pocket an additional £2,418 annually compared to someone on the minimum wage, rising to £5,050 in London as per the Living Wage Foundation.
Katherine Chapman, the executive director of the Living Wage Foundation, emphasized the importance of a wage that meets basic needs, highlighting that the Real Living Wage is determined independently based on rising living costs.
This raise is expected to significantly benefit workers and their families by easing financial pressures related to rent, bills, and food, fostering stability and security in their lives.
While acknowledging the challenges faced by low-paid workers, Chapman encouraged more employers to adopt the Real Living Wage to ensure employees can afford their cost of living, noting the positive impact on staff, businesses, and society.
Christina McAnea, the general secretary of Unison, praised the wage increase as a crucial step to prevent worker poverty, especially benefiting low-paid employees under fair employers, while urging the government to ensure public service workers receive decent pay rates to avoid financial hardships.
McAnea also expressed concerns about NHS staff falling further behind the Real Living Wage rate and urged ministers to address the issue to prevent staff shortages in essential roles within the healthcare sector.
