Marvin OnumonuReal Living Wage rates have increased to £13.45 an hour across the UK and £14.80 an hour in London, according to findings from the Living Wage Foundation.
This is an 85p (6.7%) rise across the UK and a 95p (6.9%) rise in London.
Around half a million people working for more than 16,000 real Living Wage employers will get the increase.
Research found 42% of low-paid workers used foodbanks in the past year, rising to 56% for those with dependent children.
The Government’s national living wage for over-21s stands at £12.21 an hour.
A full-time worker on the new real living wage will earn £2,418 more a year than someone on the national living wage.
In London, the difference is £5,050 a year.
Nearly 2,500 new employers signed up to pay the real Living Wage in the past year.
Data also showed that one in seven employees in the UK now works for an accredited Living Wage employer.
Over 250 employers have also signed up to living hours, guaranteeing a minimum of 16 hours’ work a week, a month’s notice of shifts, and contracts reflecting hours worked.
Katherine Chapman, executive director at Living Wage Foundation, said: “We all need a wage that covers life’s essentials, and the real Living Wage is the only UK wage rate independently calculated based solely on what is needed to cover rising living costs.
“The new rates announced today will make a massive difference to workers and their families, helping them to better cope with the costs of rent, bills, food and other essentials, and to live with stability and security.
“It remains a tough time for low-paid workers, with 4.5 million people still earning less than the real Living Wage and struggling to escape the grip of in-work poverty.”
Chapman added: “That’s why we encourage as many employers as possible to do the right thing and commit to paying a wage that reflects the real cost of living.
“Despite the challenges businesses face, our movement continues to grow, with over 16,000 employers now accredited.
“These leading employers are showing that paying the real Living Wage has a far-reaching impact on staff, businesses and society.”
Alessandro Dudech, chief operating officer at Uniqlo UK, said: “uniqlo is delighted to be accredited by the Living Wage Foundation in the UK.
“We believe that ensuring our employees are fairly compensated for their hard work is essential for fostering a motivated and productive workforce.
“uniqlo’s investment in our UK team is in line with our ambitious growth plan here, enabling us to be an attractive employer of choice.”
Dudech added: “We are proud to join the ranks of other responsible employers who are leading the way in promoting fair pay and improving the quality of life for their employees.”
Matt Sparkes, sustainability director at Linklaters, said: “We’ve paid the Real Living Wage for over a decade and we still hear from our people of the pride that it brings and the difference that it makes.
“Now, more than ever, it demonstrates a tangible commitment to fairness, respect and doing what is right.”
Francesca Small, head of people at Love Joes in Walsall, said: “The rise to the real Living Wage will be a lifeline for our greatest asset: our people.
“Low pay is the norm in our industry, so we’re proud to stand out as a company that puts its people first by paying a wage which means they can live with dignity.
“We’ve seen incredible results since becoming an accredited Living Wage Employer, including turnover dropping from 60% to 27% and many more people applying for jobs at Love Joes.”
Small added: “In just one weekend over 500 people applied for one production role! It’s been such a good investment that we’re now signed up as a Living Hours Employer so everyone at Love Joes also has working hours they can rely on.
“We’re a family-run business who will always look after our people, because only together can we grow and thrive.”
Adrian Mayo, production packing operative at Love Joes, said: “Today’s rise is great news for me and my family and I’m so glad I work for an employer who pays the real Living Wage.
“I spent years in low paid jobs, desperate to move out of my parents’ house and into my own place.
“Within months of working at Love Joes, I was able to make that a reality.”
Mayo added: “Not only are we now settled in a lovely home, the extra money the real Living Wage provides means I can afford to treat my family now and then too.
“We live a happy life without having to worry about money.
“I’m so grateful Love Joes support me with a real Living Wage and hope to work here for many years to come.”
Brett Mendell, managing director at Thomas Kneale & Co in Manchester, said: “We welcome the rise to the real Living Wage because it will make a massive difference to our colleagues.
“Paying a decent wage which meets living costs is the foundation of any good business.
“It ensures everyone who works here at Thomas Kneale can pay all their bills and save for life’s little emergencies, rather than having to live pay cheque to pay cheque.”
Mendell added: “In return for being looked after, our colleagues are more productive, take less time off sick, and stay with the organisation longer, saving us money on training and recruitment.
“So paying the real Living Wage isn’t just vital for our colleagues who need support with rising living costs, it’s also crucial for the long-term sustainability of the business, particularly when we’re facing such strong economic headwinds.
“That’s why we’ve been paying it for ten years and have gone even further by signing up to the Living Hours accreditation, providing our workers with the secure and stable hours they need to thrive.”
Sam, customer account executive at Thomas Kneale & Co, said: “Being paid the real Living Wage makes my life so much better.
“I don’t have to worry about whether I can pay this bill or that bill, cancel appointments because I can’t afford to get there, or be in and out of miserable rentals because I can’t afford anywhere better like I did when I was on a low-paid, zero hours contract in a previous job.
“Now I’m paid a real Living Wage and have secure hours at Thomas Kneale, I’m settled in a comfortable home, pay all my bills by direct debit and can go out and enjoy life with friends and family. I’m free to live on my own terms, not caught in the trap of having no money.”
