The Living Wage Foundation has announced the voluntary Living Wage rates for the next twelve months.
For all areas of the UK outside of London the rate has increased from £7.85 to £8.25 per hour. The London Living Wage, which reflects the higher price of living in the capital, has risen from £9.15 to £9.40. These rates came into effect on 2nd November and apply to all employees aged over 18.
The UK rate is 14.6% higher than the compulsory national living wage for over-25s which comes into effect next April. The number of Living Wage accredited employers has grown to over 2,000 in the last year, which means that the new rates will affect around 68,000 employees across the UK.
Sarah Vero, director of the Living Wage Foundation, said: “Today we are celebrating those 2,000 responsible businesses that are voluntarily paying the Living Wage to their staff. These employers are not waiting for Government to tell them what to do; their actions are helping to end the injustice that is in-work poverty in the UK now.”
“Today more UK businesses are announcing their Living Wage accreditation. They join a growing list of organisations ranging from FTSE 100 companies to independent businesses, SMEs and third sector employers who all share our belief that work should be the surest way out of poverty.”
HR Solutions CEO Greg Guilford said: “As more businesses adopt the voluntary Living Wage, the competition for the best talent is only going to increase.”
“The companies that are going to be the most affected are those that only offer the minimum wage in the first place. As soon as a competitor starts paying the voluntary living wage, or even more than that as Aldi recently committed to doing, then the brightest and best talent are going to go there.”
“It’s going to drive employers to offer a better deal for candidates. However it’s also going to be an important factor for businesses to consider when balancing the cost of their workforce against overall staff numbers and productivity.”
The Living Wage Foundation bases the rates on the cost of living. You can find the calculations and more information about accreditation on the foundation’s website.