The Living Wage Foundation has just announed the new rate for the Real Living Wage
New Real Living Wage Rate
As we highlighted in a previous article, the new rate for the Real Living Wage (RLW) was brought forward from November 2022 to the 22nd September 2022, due to the surge in inflation and the cost of living crisis.
The Real Living Wage has been increased by £1.00 per hour from £9.90 per hour to £10.90 per hour, an increase of 10.1%. The increase will apply with immediate effect from the 22nd September 2022. The new rate of £10.90 per hour means that the Real Living Wage is now £1.40 per hour higher than the current rate of £9.50 per hour for the National Living Wage.
The new rate for the London Living Wage has also just been announced at the same time as the new rate for the Real Living Wage, with the new rate for the London Living Wage increasing by 90p per hour from £11.05 per hour to £11.95 per hour. Again, the new rate will apply with immediate effect. Accordingly, the London Living Wage is now £2.45 per hour higher than the current rate for the National Living Wage.
For a full-time worker on the new rate for the Real Living Wage, they will earn almost £3,000.00 more a year than one who is on the current rate for the National Living Wage. Those on the new rate for the London Living Wage, will earn almost £5,000.00 more per annum.
The new rate for the Real Living Wage is usually announced in November each year. Nevertheless, since last years increase in the Real Living Wage, inflation has tripled from 3.1% back then to 10.1% in July 2022, before falling back to 9.9% in August 2022. Moreover, a cost of living crisis has taken root following the Russian invasion of Ukraine, with huge increases in the prices of energy, fuel, and food. Hence, the announcement by the Living Wage Foundation that the new rate for the Real Living Wage would be brought forward from November 2022 to the 22nd September 2022.
Those organisations committed to paying the Real Living Wage are now also being encouraged by the Living Wage Foundation to adhere to a 'living hours standard' alongside paying the Real Living Wage, in which workers are provided with:-
- At least 16 hours per week
- A minimum of 4 weeks notice of shifts, with pay guaranteed should shifts be cancelled within the notice period
- A contract containing "accurate hours worked."
Low Paid Facing Worst Financial Crisis Of Their Lives
New research conducted by Survation for the Living Wage Foundation has also found that the cost of living crisis represents the worst financial crisis that the majority of low paid workers (defined as those 4.8 million workers paid below the Real Living Wage) have ever faced. The survey, in which 2000 workers were interviewed, found the followng:-
- 78% of the low paid state that the cost of living crisis is the worst financial crisis they have ever faced. Extrapolating the findings to the entire workforce using Office for National Statistics (ONS) labour force data, that amounts to 3.7 million workers
- 2.7 million low paid workers (56%) have had to resort to a food bank during the last year, of which 63% (1.7 million workers) of that total have increased their use of food banks during that period
- 2 million low paid workers (42%) state that they have regularly skipped meals over the last year, with 32% (1.5 million workers) stating that they have not been able to afford to heat their homes
- 1.2 million low paid workers (24%) have had to resort to taking out payday loans over the last year
- 69% of low paid workers (3.3 million) report that their financial situation is adversely impacting upon their stress levels and quality of life
- Two thirds of low paid workers have less than £20 left at the end of each week, with just over a quarter having nothing left
Commenting upon the findings of the survey, the director of the Living Wage Foundation, Katherine Chapman, states: "Everyone is feeling the pressure from soaring inflation, but our polling shows that low-paid workers are being hit harder than most with well over half using foodbanks in the last 12 months. These shocking findings bring to life what it’s like to be paid less than a real Living Wage during a cost-of-living-crisis. It’s more important than ever that those employers who can, step up and provide a wage based on the cost of living, joining over 11,000 Living Wage Employers across the UK."
