The new UK voluntary Living Wage rate has been set at £9.30 per hour, an increase of 30p per hour on last year’s rate, and £1.09 more than the minimum wage for over 25s.
The Living Wage Foundation, which calculates the rate based on the cost of living, made the announcement at the start of Living Wage Week (November 11-17), which saw employers host events across the UK.
The voluntary Living Wage rate for London is now £10.75 per hour, an increase of 20p per hour on last year.
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.”
United Kingdom Homecare Association said it is revising its Minimum Price for Care version 6 to include the revised rates and will issue an update.
Businesses and civic leaders in Salford and Cardiff have also announced ambitious plans to become the first Living Wage cities in England and Wales, committing to more than double the number of local workers getting the rate.
“This year for the first-time cities and towns have announced big plans to grow the number of Living Wage Employers in their communities. We are delighted at the ambition of Cardiff and Salford to build Living Wage cities, with Cardiff planning to double the number of workers getting the real Living Wage to nearly 50,000, freeing many more families from the low pay trap. We hope to see many more towns and cities follow suit,” Chapman added.
The increase in the Living Wage rate means that a full-time worker paid the Living Wage will receive more than £2,000 in additional wages compared to the current government minimum – equivalent to nine months of a typical family’s food and drink bill, according to the Living Wage Foundation.
In London, a full time worker will receive £5,000 more per year, equivalent to an average family’s annual food, drink, gas and electric bills.