More than 140,000 Londoners will get a pay boost of 5.3 per cent as it was revealed on Wednesday that the capital’s “real living wage” has increased to £13.85 per hour.
The rise represents a boost of 70p from the previous rate of £13.15, which is paid on a voluntary basis by the 4,000 London employers who have signed up to the benchmark set by the Living Wage Foundation (LWF).
Across the rest of the UK, where living costs are generally lower, the LWF’s real living wage increased by five per cent to reach £12.60 per hour.
“Low paid workers in London have been hardest hit by the cost of living crisis and are still struggling to stay afloat amidst persistently high prices,” said LWF director Katherine Chapman.
“The real living wage remains the only UK wage rate calculated based on actual living costs, and the new rates announced today will make a massive difference to almost half a million workers who will see their pay increase.”
By law, across the UK and including in London, employers must only pay what is called the ‘national living wage’ to those aged 21 and older, currently set at £11.44 per hour. Those aged between 18 and 20 are only entitled to what is still called the ‘minimum wage’ of £8.60 per hour across the country.
The LWF calculates that a full-time worker on their new real living wage in London would now earn £4,700 more per year than someone on the Government’s national living wage.
Ms Chapman added: “This year, we reached the major milestone of 15,000 accredited living wage employers, with 4,000 of those based in London.
“Employers who want to go beyond the Government’s minimum wage and ensure their workers are paid in line with the real cost of living can look to these leading employers and accredit with the Living Wage Foundation.”
Among London’s 4,000 accredited employers are half of the FTSE 100 companies, as well as businesses and amenities like Dusty Knuckle Bakery, Bird & Blend Tea Co, London Stadium, London Aquatics Centre, West Ham Football Club, and Greenwich Pantry.
The increase was welcomed by London mayor Sadiq Khan, who said: “I’ve always been a huge champion of the campaign and we’ve seen a six-fold increase in employers paying the London living wage since my election as mayor…
“The living wage movement started in London and I’m proud it has increased by almost 50 per cent since I became mayor. By raising the salaries of the lowest paid workers in the capital, we can build a better and more prosperous city for all Londoners.”
It was revealed last week that more than half of the almost 600,000 Londoners who do not earn the LWF’s real living wage have had to resort to using a foodbank in the last year.
