A pay increase could be on the way for at least 180,000 people in the UK whose employers are signed up to the ‘Real Living Wage’. On Tuesday 6th November the Living Wage Foundation announced that the UK Living Wage rate had increased to £9.00 per hour, whilst those working in London would see the rate increase to £10.55 per hour.

The Real Living Wage is a voluntary rate set by the Living Wage Foundation and aims to ensure that workers are paid enough to cover their living costs. The rate is independently-calculated by the Resolution Foundation and is overseen by the Living Wage Commission and is based on everyday living costs of people in the UK.

The Real Living Wage differs from the Government’s National Living Wage which is the legally binding hourly rate for workers aged 25 and over and which is currently set at £7.38 an hour. The Living Wage Commission argues that the government’s National Living Wage is not high enough to meet workers’ needs and encourages employers to voluntarily adopt their independently calculated rate.

The Real Living Wage rate has increased by 25p from £8.75 per hour and the London Living Wage has risen by 35p per hour to £10.55.

Living Wage Foundation director Tess Lanning said “Employers that pay the Real Living Wage enable their workers to live a life of dignity, supporting them to pay off debts and meet the pressures of rising bills.”

More information on the UK Real Living Wage can be found here.

If you need advice on an Employment matter the Thompson Smith and Puxon Employment team can be contacted on 01206 574431 or by email at info@tsplegal.com.