Further to our recent article on the increase in the rates for the national living wage and national minimum wage that come into force from the 6th April 2021, the new rate for the real living wage was recently published by the Living Wage Foundation, whilst the new rate for the London Living Wage has also been announced.
The Real Living Wage
The real living wage was increased on the 9th November 2020 by 20p per hour from £9.30 per hour to £9.50 per hour. The new rate of £9.50 per hour means that the real living wage is now £0.59 per hour higher than the new rate for the national living wage that will apply from the 6th April 2021, and £0.78 higher than the current rate.
London Living Wage
The new rate for the London living wage was announced at the same time as the new rate for the real living wage, with the new rate for the London living wage rising by 10p from £10.75 per hour to £10.85 per hour. Accordingly, the London living wage is now £1.94 higher than the new rate for the national living wage that will apply from the 6th April 2021, and £2.13 higher than the current rate.
Reaction
The Living Wage Foundation also announced that almost 7000 employers now pay the real living wage and London Living wage, which means that over 250,000 employees will benefit from the new rates in terms of pay rises. Indeed, over 800 additional employers have signed up and undertaken to pay the real living wage and London living wage since the start of the coronavirus pandemic. Moreover, research by Cardiff Business School has calculated that workers have received an additional £1.3 billion as a result of the wage increases that the living wage campaign has brought about since 2011.
Laura Gardiner, the director of the Living Wage Foundation, stated: "It’s an incredibly challenging time for us all, but today’s new Living Wage rates will give a boost to hundreds of thousands of UK workers, including thousands of key and essential workers like cleaners, care workers, and delivery drivers who have kept our economy going. Since the start of the pandemic employers have continued to sign up to a real Living Wage. During Living Wage Week it’s right that we celebrate those employers that have done right by workers and families, providing them with much needed security and stability even when times are hard. These are the employers that will allow us to recover and rebuild from this crisis.."
