London Living Wage rises to £10.20 an hour

Living Wage New Zealand convener, Annie Newman said for many low wage workers, the boost in pay can't come soon enough.

The so-called "real living wage" will increase by 45p to #10.20 an hour in London and by 30p to #8.75 in the rest of the country, with more than 3,600 employers signed up to the rates, which are higher than the statutory National Living Wage of #7.50 for over 25-year-olds.

Unlike the national minimum wage, the living wage is an hourly rate of pay set independently and updated annually that is calculated with reference to the basic cost of living in the UK.

As a result, London now accounts for nearly 42 per cent of businesses paying the Living Wage in the United Kingdom.

Addressing household finances, Bagnall said that although less people were earning below the RLW, those at the bottom of the pay scale were feeling the "squeeze" due to increases in the cost of living and a decline in pay.

The Living Wage is one of three wage schemes in operation - it's calculated according to the basic cost of living in the United Kingdom but is voluntary, so employers can choose to pay this amount.

KPMG UK director Andy Bagnall said more work had to be done to end in-work poverty.

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The supermarket has committed itself to an additional annual investment of over £3.5m in order to cover the cost of the rise.

Living wage advocates will gather at Parliament today to congratulate the new Government.

Heathrow Airport announced on Monday it had signed up to the living wage, meaning more than 3,200 of its lowest-paid workers, including cleaners and security staff, will have their weekly wages raised by up to £100 a week.

Industry figures revealed this summer that the chain's increasing popularity showed no sign of slowing as Lidl overtook Waitrose to become the seventh-largest supermarket in the UK. More than 16,000 employees will benefit from the change.

The Mayor of London, Sadiq Khan, said: "I pledged to ensure the London Living Wage rises to beyond £10 and I am delighted that has been achieved". They struggle to pay the rent.

Sadiq Khan added: "Paying the London Living Wage is not only the action of a responsible organisation, but a successful one too".

(Copyright © 2015. All Rights Reserved.)
 
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