400,000 people better off thanks to the real Living Wage
This week is Living Wage Week 2022. Join us to celebrate the movement that’s given hundreds of thousands of workers a pay rise with a real #LivingWage.
New research by the Living Wage Foundation demonstrates that, despite the number of workers earning below the real Living Wage standing at the lowest it has been in 10 years (3.5 million), this is a ‘lull before the storm’ with the number of jobs paying below the real Living Wage forecast to jump to 5.1 million next year as wages continue to lag behind inflation amid the cost-of-living-crisis.
Paying just a quarter of low-paid workers the Real Living Wage could pump £1.7billion back into the economy, research reveals today. In this cost-of-living crisis, it's more important than ever that employers page their workers a real living wage.
The new Living Wage rates were announced on Thursday 22nd September 2022 - £10.90 across the UK (£1 increase), and £11.95 in London (90p increase) - by comparison, the National Minimum/Living wage set by the Government is £9.50.
The real living wage is based on what people need to live and employers pay it voluntarily. At the heart of the movement is the idea that a hard day’s work deserves a fair day’s pay. With the cost-of-living crisis causing inflation and our bills to spiral, the Living Wage foundation have factored this into the new rates for 2022/23. There are now over 11,000 employers are now part of the movement - that's an increase of more than 2,000 employers since last year.
More than £2 billion in extra wages has gone to low-paid workers since the start of the Living Wage movement 20 years ago. And £613 million in extra wages has gone to low-paid workers since the start of lockdown, with a record number of employers signing up - over 3,000 since the pandemic began.
Accord is proud to be a Living Wage employer and thanks to our efforts, Lloyds Banking Group and TSB joined the Living Wage movement covering thousands of workers. We set an example to employers in the financial sector by signing up to the UK Living Wage Foundation in May 2015.
With the cost of living rising and families facing more pressure this winter, it has never been more important for businesses do the right thing and commit to paying a real Living Wage. The Living Wage Foundation is calling on all major employers to step up and tackle this problem together by committing to go beyond the government minimum and pay a wage in line with the real cost of living.
Did you know @LivingWageUK’s real Living Wage is the only wage rate independently calculated to cover the cost of living? Spread the word using the hash tag #LivingWageWeek on social media.
Explaining UK wage rates
In April 2016 the government introduced a higher minimum wage rate for all staff over 25 years of age inspired by the Living Wage campaign - even calling it the ‘national living wage’.
However, this wage is not calculated according to what employees and their families need to live. Instead, it is based on a target to reach 66% of median earnings by 2024. Under current forecasts this means a rise to £10.50 per hour by 2024 and from 2021 was adjusted to include those over 23 years old. The government minimum considers what is affordable for businesses.
The real Living Wage rates are higher because they are independently calculated based on what people need to get by. That's why we encourage all employers that can afford to do so to ensure their employees earn a wage that meets the costs of living, not just the government minimum.
