210,000 workers to get a pay rise as real living wage increases

AROUND 210,000 workers across the UK will see their pay packets rise after increases to the real living wage were announced today.

Employees will see their hourly rate go up by 30p to £9.30, or by 20p to £10.75 if they work in London.

The increase applies to businesses who have signed up to the voluntary real living wage scheme, with rates set by the Living Wage Foundation.

These are separate to the national living wage and are based on what a full-time worker and their family needs to make ends meet, including costs of food, clothing and household bills.

The rate is payable to everyone over the age of 18 and is updated every year.

The Living Wage Foundation estimates around 6,000 employers are signed up to pay the real living wage.

What’s the difference between the real living wage and the national living wage?

THE real living wage is different to the national living wage – here’s what you need to know.

Real living wage

The real living wage is a voluntary rate of pay set by the Living Wage Foundation.

Based on their recommended minimal hourly rate, the real living wage is currently set at £9.30 or £10.75 if you work in London.

The rate is payable to anyone over the age of 18 and accounts for private rental costs, council tax, and the costs of food and public transport.

The rate is calculated every November and employers who have volunteered to pay the real living wage are committed to any increases.

One third of FTSE 100 companies are voluntarily signed up to the Living Wage Foundation.

National living wage 

The national living wage is the minimum amount of pay all employees aged over 25 are legally entitled to.

In April this year, the hourly national living wage increased by 38p to £8.21.

The first national minimum wage was set in 1998 by the Labour government before being re-branded to the national living wage in 2016.

If you're under 25, you'll get the national minimum wage which varies depending on your age or if you're an apprentice.

The breakdown is currently:

Age 21 to 24 – £7.70

Age 18 to 20 – £6.15

Under 18 – £4.35

Apprentice – £3.90

Big businesses who are already part of the programme include Ikea, ITV, Everton Football Club and Crystal Palace Football Club.

The Living Wage Foundation said the rates were now £1.09 higher than the hourly statutory minimum wage of £8.21 for adults aged 25 and over.

Workers will hear about the increases today although the new rates will be brought in over the next few months.

Living Wage Foundation director, Katherine Chapman, said: "In this time of uncertainty today's new living wage rates give a boost to hundreds of thousands of UK workers.

"Good businesses know that the real living wage means happier, healthier and more motivated workers, and that providing workers with financial security is not only the right thing to do, but has real business benefits."

The increase comes after research by KPMG recently revealed how 5.2 million jobs are still paying less than the real living wage.

According to the accounting agency, this is the same as 38 per cent of part-time jobs, compared to 12 per cent for full-time employees.

Northern Ireland was found to have the highest percentage of jobs paying below the living wage at 23 per cent, while South East England had the lowest at 15 per cent.

James Stewart, head of Brexit and industrial strategy at KPMG said: "We must ensure that part-time workers are not left behind – as these figures show well over a third are not benefiting from the real living wage."



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