Further to our recent article on the increase in the national living wage that comes into force in April 2019, the Living Wage Foundation has just published the new rate for the “real living wage”, whilst the London Mayor, Sadiq Khan, has also announced the new rate for the “London Living Wage”.
Real Living Wage
The real living wage has increased by 25p per hour to a rate of £9.00 per hour. This represents an increase of 2.9%, and the new rate of £9.00 per hour means that the real living wage is now £1.17 per hour higher than the new rate for the national living wage.
London Living Wage
At the same time as the Living Wage Foundation was publishing the new rate for the real living wage, the London Mayor, Sadiq Khan, announced the new rate for the London living wage. That increased by 35p per hour to a new rate of £10.55 per hour. This represents an increase of 3.4%, and the new rate is now £2.72 per hour more than the new rate for the national living wage.
The Living Wage Foundation also announced that 4700 employers now pay the real living wage and London Living wage, which means that over 180,000 employees will benefit from the new rates in terms of pay rises. Indeed, the Living Wage Foundation calculated that workers had received an additional £809 million as a result of the wage increases that the living wage campaign had brought about, with over £200 million of that paid over the last year.
Tess Lanning, the director of the Living Wage Foundation, stated: “The Living Wage campaign is about tackling the rising problem of people paid less than they need to live. Responsible businesses know that the government minimum is not enough to live on, and today’s new Living Wage rates will provide a boost for hundreds of thousands of workers throughout the UK. Employers that pay the real Living Wage enable their workers to live a life of dignity, supporting them to pay off debts and meet the pressures of rising bills. We want to see local councils, universities, football clubs, bus companies and the other major public and private sector employers in every city commit to become real Living Wage employers. When they do, thousands of people get a pay rise, but other local employers also follow their lead. If more of these institutions step up, we can start to build true Living Wage places.”