The Living Wage Foundation have today announced that the Living Wage will increase, the London Living Wage will increase and Heathrow Airport have become the first Living Wage Airport.
- New UK Living Wage of £8.75 per hour, an increase of 30p per hour
- New London Living Wage of £10.20 per hour, an increase of 45p per hour
- The UK rate is £1.25 per hour more than the minimum wage (for over 25s) and the London Living Wage is £2.70 more an hour
- Since 2011 more than half a billion pounds (£613,000,000) in extra wages has gone to low-paid workers
- At least 150,000 UK workers are set for a pay rise as the new Living Wage rates rise to £8.75 around the UK, and £10.20 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 is a 3.6% rise in the UK and 4.6% rise in London.
The Real Living Wage rates are independently calculated, based on the real cost of living in the UK and London. The 2017 increases have been largely driven by higher inflation feeding through to the basket of goods and services that underpin the rates, with rising private rents and transport costs also having an impact.
Will I get a pay rise?
Not necessarily, no! The Living Wage Foundation set what they believe the Real Living Wage to be and ask employers to sign up to do so, so far over 3,500 have (find out more on their website). The Living Wage isn't compulsory, at present employers must pay employees under 25 years old the National Minimum wage:
The rates from 1 April 2017 are:
- £7.50 per hour - 25 yrs old and over
- £7.05 per hour - 21-24 yrs old
- £5.60 per hour - 18-20 yrs old
- £4.05 per hour - 16-17 yrs old
- £3.50 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.
Employees over the age of 25 should be paid the National Living Wage which is set at £7.50 per hour.