Member Article

35,000 people set to benefit from Living Wage rise

The UK Living Wage, an hourly rate based on the amount needed to cover the basic costs of living, has been raised by 20p to £7.85, but more than 5 million people are still earning below its hourly basic rate of £7.85.

The voluntary rate has been adopted by more than 1,000 employers across the country, benefiting 35,000 workers.

The Living Wage Foundation, an initiative by Citizens UK, is now 21% higher than the compulsory UK minimum wage, set at £6.50 by the government.

Research published by accounting firm KPMG, a supporter of the Living Wage, found that 22% of the working population earn less than the 2013 Living Wage - which was set at £7.65 an hour.

However, campaigners are adamant that figure no longer reflects the real cost of living.

A new Living Wage rate for London, currently £8.80 an hour, will be announced later today.

Firms who have voluntarily signed up to the scheme include Barclays, Standard Life, the National Portrait Gallery as well as many local councils and charities.

However chains like Ritzy Cinema, Tesco and Amazon have not signed up and are being targeted by campaigners.

However the argument from small businesses is that, given the UK’s sluggish economy, they would struggle to pay more than the minimum wage of £6.50 an hour.

This was posted in Bdaily's Members' News section by Clare Burnett .