London’s Living Wage has increased to £13.85 per hour, giving a 5.3% pay boost to over 140,000 Londoners. This voluntary rate, calculated by the Living Wage Foundation, has gone up by 70 pence from the previous rate of £13.15. The foundation sets this benchmark, which is followed by 4,000 London employers who have signed up to pay their employees this real living wage.
In contrast, the rest of the UK has seen the LWF’s real living wage increase by five per cent to £12.60 per hour. According to LWF director Katherine Chapman, low paid workers in London have been struggling due to the high cost of living and the new rates announced will help almost half a million workers by increasing their pay.
It is important to note that the national living wage, which is £11.44 per hour for individuals aged 21 and older, is the legal minimum wage that must be paid by employers across the UK. Workers aged between 18 and 20 are only entitled to the minimum wage of £8.60 per hour.
The LWF estimates that a full-time worker in London earning the new real living wage will make £4,700 more per year compared to someone on the national living wage set by the government. The director also highlighted that there are now 15,000 accredited living wage employers, with 4,000 of them located in London.
Among the accredited employers in London are half of the FTSE 100 companies, as well as small businesses such as the Dusty Knuckle Bakery and the Bird & Blend Tea Co, along with larger organizations like the London Stadium and West Ham United Football Club. Sadiq Khan, the Mayor of London, praised the increase in the London Living Wage, stating that it has risen by almost 50% since he took office.
Recent data revealed that over half of the 600,000 Londoners not earning the real living wage have had to rely on food banks in the past year. This highlights the importance of fair wages and the impact it has on individuals’ quality of life in the capital.