Published On: Wed, Jul 10th, 2024
Business | 4,200 views

Thousands set for pay rise as more companies sign up to ‘real living wage’ | Personal Finance | Finance

Over 15,000 UK businesses are now paying their employees the Real Living Wage of £12 or more per hour.

The Real Living Wage rate is determined by the Living Wage Foundation (LWF) and is calculated based on current living costs, including bills, groceries, and other expenses. It applies to all workers aged 18 and over.

The Real Living Wage is a voluntary scheme that businesses can choose to join, setting it apart from the UK’s National Living Wage and Minimum Wage. At present, the Real Living Wage stands at £12 per hour across the UK and £13.13 in London.

This exceeds the Government’s living wage of £11.44, which only applies to workers aged 21 and above.

Despite economic challenges, the foundation reports that 7,500 employers have committed to paying the Real Living Wage since 2021, with nearly 1,500 joining in 2024 alone. The latest companies to sign up include Fred Perry and Pieminister, joining other well-known brands such as Ikea, National Express, Burberry, Nationwide, Lush, and Aviva, reports the Mirror.

A full list of employers paying the Real Living Wage can be found here.

Katherine Chapman, Director of the Living Wage Foundation, expressed her enthusiasm: “We are delighted to have reached 15,000 accredited employers and to have employers like Fred Perry and Pieminster join the Living Wage movement. Our growing network of accredited employers is committed to always paying their staff a wage based on the cost of living. Since the Living Wage movement began over 20 years ago, over 460,000 workers have received pay rises and it over £3billion has been put back into the pockets of low paid workers.”

In addition to the wage rate, more than 250 Real Living Wage employers also offer a guaranteed minimum of 16 hours of work each week, a month’s notice for shift patterns, and a contract that reflects actual hours worked, addressing another aspect of “in work poverty”.

Furthermore, over 40 employers are addressing poverty among their older workforce through Living Pension accreditation. Living Pension Employers pledge to meet either a cash (£2,800) or percentage (12%) savings target, with the employer contributing at least 7%, or £1,630.

Meanwhile, 11 employers, including Aviva, SSE Plc, and Dear Green Coffee Roaster, hold accreditations for Living Wage, Living Hours, and Living Pension.

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