Almost 500,000 workers are in line for a salary increase following the announcement of a boost to the Real Living Wage.
The Real Living Wage, a voluntary wage for employees aged 18 and above whose employer is affiliated with the Living Wage Foundation, is designed to cover basic necessities like food, clothing, and household expenses.
The new hourly rates will see a rise of 85p to £13.45 per hour, a 6.7% increase, and an increase of 95p to £14.80 per hour in London, a 6.9% uptick. These rates surpass the minimum wage requirement.
Applicable to all workers over 18 employed by a Real Living Wage-certified employer, which now includes over 16,000 organizations, the salary hike means that a full-time employee earning the Real Living Wage will pocket £2,418 more annually than someone on the minimum wage, and £5,050 more in London, as stated by the Living Wage Foundation.
Katherine Chapman, the executive director of the Living Wage Foundation, emphasized the importance of a wage that covers essential living costs, highlighting that the Real Living Wage is determined independently based on the actual expenses incurred for daily living.
The increase in rates is intended to significantly benefit workers and their families, easing the financial burden of rent, bills, and basic needs, promoting stability and security in their lives.
With millions still earning below the Real Living Wage and struggling with in-work poverty, Chapman urged more employers to commit to paying wages that reflect the true cost of living, despite the challenges they may face.
Christina McAnea, the general secretary of Unison, praised the wage rise as a crucial standard to prevent workers from falling into poverty, emphasizing the responsibility of the government to ensure decent pay for public service workers to support their families and fulfill their duties effectively.
Notably, many NHS staff are at risk of falling further behind the Real Living Wage rate, potentially leading to a loss of essential personnel to other industries offering competitive wages. McAnea called on ministers to address this issue by reforming the NHS pay system in collaboration with unions to rectify the situation.