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Thousands of workers will benefit from a rise in the Living Wage to £8.75 per hour around the UK and £10.20 per hour in London.
The UK rate has increased by 30p from £8.45 to £8.75 with the London Living Wage rising by 45p an hour from £9.75 to £10.20 an hour. This represents a 3.6% rise in the UK and 4.6% rise in London.
The Living Wage rates are not the same as the National Living Wage [or National Minimum Wage] which is legally enforced by the Government and currently stands at £7.50 for over 25s outside London and £9.75 per hour for those in London.
The Living Wage is voluntary and is independently calculated, based on the real cost of living in the UK and London. The Living Wage Foundation says the 2017 increases have been largely driven by higher inflation.
The announcements come after new research published by KPMG which showed that 5.5 million people across the UK – a fifth of workers – are still paid less than the real Living Wage.
Over 3,600 employers across the UK have signed up to the Living Wage, including a third of the FTSE 100, Ikea, Heathrow, Google, Lush and Slush Puppie.