Real Living Wage increases by 10%

The voluntary Real Living Wage has increased by 10% to £12 in the UK and £13.15 in London.

The Real Living Wage Foundation announced the increase today, saying the cost of living crisis continued to hit low-paid workers the hardest.

Workers whose employers opt-in to pay the Real Living Wage will see their pay packets increase. The rate is higher than the government-set national minimum wage, which stands at £10.42 an hour for those aged 23 and over.

Some 14,000 employers are signed up to pay the new rate, impacting more than 460,000 employees.

The new Real Living Wage rate, which applies to everyone over the age of 18, marks a £1.10 increase per hour for those working across the UK and a £1.20 rise per hour for those employed in London.

Katherine Chapman, Real Living Wage Foundation director, said: “As inflation eases, we cannot forget that low-paid workers remain at the sharp end of the cost of living crisis. 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 real Living Wage rates are a lifeline for the 460,000 workers who will get a pay rise.

“During these tough economic times, it is heartening that record numbers of employers are signing up to join the Living Wage movement, protecting everyone who works for them – including cleaners – from rising prices and seeing the benefits of a more motivated and engaged workforce. The Real Living Wage has never been more important and we encourage those who can to join the 14,000 Living Wage employers across the UK who are committed to always pay a wage that covers the cost of living.”

Kristina Maculska, who earns the Real Living Wage and works in the catering team at the London Stadium, said: “The rate rise makes a real difference to me and my family especially when the cost of living is so high, particularly in London. The Real Living Wage has a positive impact on my motivation and productivity at work. Additionally, it helps to feel secure about tomorrow and maintain stable mental health, which is important for healthy relationships with colleagues and family.”

The government has set a target for the National Minimum Wage to reach two-thirds of median earnings by 2024 for workers aged 21 and over.

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