The new voluntary London Living Wage has increased by 3.7 per cent in London and 2.4% in the rest of the UK to reflect the rising cost of living.
In London the hourly rate has risen from £9.40 to £9.75 per hour to reflect the higher cost of living facing families in the city.
The UK rate has increased from £8.25 to £8.45 – 17% higher than the government minimum for over 25s which is £7.20 per hour. Around 3,000 employers have signed up to pay the Living Wage. They include Everton Football Club, Curzon Cinemas and law firm DLA Piper International.
Research published by KPMG this week showed that one in five people are still paid less than the Living Wage.
Katherine Chapman Director of the Living Wage Foundation said: “Today’s new Living Wage rates bring a welcome pay rise to thousands of workers across the UK. 1 in 5 people earn less than the wage they need to get by. That’s why it’s more important than ever for leading employers to join the growing movement of businesses and organisations that are going further than the government minimum and making sure their employees earn enough to cover the cost of living. As we kick off Living Wage Week today we are celebrating nearly 3,000 employers across the UK who lead the way on tackling low pay by paying the real Living Wage. The sheer growth of our movement shows that the Living Wage is good for people and good for business.”