More than 140,000 Londoners will benefit from a 5.3% pay rise, as the London Living Wage is set to increase to £13.85 an hour. This wage, developed by the Living Wage Foundation, is based on independent calculations designed to ensure workers can meet the city’s high cost of living.
Approximately 3,500 employers across London have voluntarily signed up to this scheme, demonstrating their commitment to fair wages.
Katherine Chapman, Director of the Living Wage Foundation, emphasized that the new rate, up 70p from £13.15, will “make a massive difference to workers,” helping many meet rising living costs.
Real Living Wage in the UK
Outside of London, the Real Living Wage has risen by 5% to £12.60 per hour. This initiative is separate from the government’s National Living Wage, which sets a legal minimum for those aged 21 and older, currently at £11.44 per hour.
For a full-time worker, the London Living Wage now provides an additional £4,700 per year compared to the National Living Wage, offering significant financial relief. Research from the Living Wage Foundation shows that despite this, nearly 600,000 low-paid workers in London continue to feel the strain of high living costs.
In a recent survey, it was found that over half of Londoners earning below the London Living Wage have had to rely on food banks in the past year.
Employer Benefits and Business Impact
Companies like The Bird & Blend Tea Co, The Oval Cricket Ground, Shakespeare’s Globe, and West Ham FC are among the many London employers committed to paying the London Living Wage.
Mike Turner, co-founder of Bird & Blend Tea Co., which operates three shops across London, shared how adopting the Living Wage has benefited the company. “Introducing the Living Wage has not only reduced staff turnover but has improved recruitment too. Treating people fairly while doing business the right way is the recipe for a successful company and a happy team.”
Muniya Barua of BusinessLDN acknowledged that while this above-inflation increase presents challenges for businesses, it also brings clear advantages. “Not only does it support the lowest-paid workers, but it also boosts retention and recruitment of talent,” she said.
A Brighter Future for London
Sadiq Khan, the Mayor of London, hailed the wage increase, stating: “By raising the salaries of the lowest-paid workers in the capital, we can build a better and more prosperous city for all Londoners.”
Since 2011, more than £1.4 billion in additional wages have gone to low-paid employees in London thanks to the Living Wage initiative.
For more updates on wages and business trends, visit UK Profits.
