At least 150,000 UK workers are set for a pay rise as the new Living Wage rates rise to £8.75 around the UK, and £10.20 in London.
The UK rate has increased by 30p from £8.45 to £8.75 (3.6 per cent rise) with the London Living Wage rising by 45p an hour from £9.75 to £10.20 an hour (4.6 per cent increase).
The Living Wage rates are independently calculated, based on the real cost of living in the UK and London. The 2017 increases have been largely driven by higher inflation feeding through to the basket of goods and services that underpin the rates, with rising private rents and transport costs also having an impact.
The announcements come after new research published by KPMG showed that 5.5 million people across the UK are still paid less than the real Living Wage, that’s one-in-five workers, 21 per cent of the UK workforce.
The Living Wage Foundation also revealed that Heathrow airport will become the first Living Wage airport. This recognition will see the UK’s largest airport ensure 3,200 airport workers are paid the Living Wage by the end of 2020 and marks a significant milestone in the airport’s long term plan for sustainable growth.
Heathrow is amongst over 150 employers accrediting in the build up to Living Wage Week, including the National Gallery, Somerset House and JLL. They join over 3,600, employers across the UK, including a third of the FTSE 100, household names IKEA, Aviva, Nationwide, Chelsea and Everton Football Clubs and Google, as well as thousands of small businesses.
More than 1,000 employers have signed up to pay the real Living Wage since Living Wage Week last year.
Living Wage Foundation Director, Katherine Chapman said: “The new Living Wage rates will bring relief for thousands of UK workers being squeezed by stagnant wages and rising inflation. It’s thanks to the leadership of over 3,600 employers across the UK who are committed to paying all their staff, including cleaners and security staff, a real Living Wage.
“In-work poverty is today’s story. New figures out show that 5.5 million people are still paid less than the real Living Wage – it’s fantastic that this year alone over a thousand more employers have chosen to go beyond the legal minimum and pay a real Living Wage, putting fairness and respect at the heart of their business.
“Great businesses know that, even during these tough times, not only is fair pay the right thing to do but paying the real Living Wage brings big benefits. Nine out of 10 accredited Living Wage employers report real benefits including improved retention, reputation, recruitment and staff motivation.”