Employee RelationsNews

Real living wage increases to £9.50 across the UK

The real living wage rate for 2020/21 has been announced today as £9.50 in the UK and £10.85 in London, with over 7,000 UK employers who have voluntarily signed up to “real living wage” now required to increase their workers pay by up to 20p.

The real living wage is an hourly rate of pay set independently and updated annually (not the UK government’s National Living Wage). It is calculated according to the basic cost of living in the UK, and employers choose to pay the wage on a voluntary basis. 

Over 800 more employers have accredited the Living Wage Foundation (LWF) since the start of the pandemic, including Tate and Lyle Sugars, Network Rail, the All England Lawn Tennis Club, and Capital One.  

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Research by the LWF has shown that 20% of all employees are still paid less than the real living wage in the UK, and Northern Ireland had the highest proportion of jobs paying below the Living Wage of 25.3%, while Scotland had the lowest at 15.2%.

Laura Gardiner, LWF, director, said: “It’s an incredibly challenging time for us all, but today’s new Living Wage rates will give a boost to hundreds of thousands of UK workers, including thousands of key and essential workers like cleaners, care workers, and delivery drivers who have kept our economy going.  

“Since the start of the pandemic employers have continued to sign up to a real living wage. during living wage week it’s right that we celebrate those employers that have done right by workers and families, providing them with much needed security and stability even when times are hard.”

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