‘Real’ Living Wage announcement to be brought forward in response to the unprecedented rise in living costs.
On 29th May 2022, The Living Wage Foundation (LWF) announced its decision to bring its new ‘real’ Living Wage (Real Living Wage) rate announcement forward from November’s Living Wage Week to September.
The decision to make this announcement some two months earlier than usual was made by LWF in response to the unprecedented rise in living costs and soaring inflation (the consumer prices index rate of inflation reached 9% this April, the highest since 1982).
The Real Living Wage rate is the only UK wage rate based on the cost of living. When calculating the Real Living Wage, LWF uses a robust method to establish the hourly rate employers should be paying their workers based on what people need to afford as a minimum. The current Real Living Wage rate across the UK, save for the capital that has a higher rate of £11.05 to reflect the increased cost of living, which is currently £9.90. It is important to note that the Real Living Wage rate is separate from the compulsory national living wage i.e. the statutory national minimum that must be paid to workers aged 23 and over (currently £9.50).
There is no legal obligation on an employer to pay LWF’s Real Living Wage, however, over 10,000 employers choose to do so. This includes many small-to-medium-sized businesses, as well as large organisations such as Everton Football Club, National Rail and Pandora.
Accredited Real Living Wage employers will be encouraged to pay the new, yet to be revealed, Real Living Wage, as soon as possible. Sources: Livingwage.org