The 11,000 businesses that voluntarily pay the Living Wage will be giving their 400,000 workers a pay rise as rates increase today.
Rates have risen by £1 to £10.90 an hour across the UK and by 90p to £11.95 an hour in London – the largest year-on-year rises.
The increases have been brought forward from November in recognition of the sharp increase in living costs over the past year. The rates are higher than the statutory government National Living Wage (NLW) of £9.50 an hour for adults.
Unlike the NLW, the Living Wage is independently calculated based on rising living costs. A full-time worker earning the new, Living Wage would earn £2,730 a year more than a worker earning the current government minimum, and £1,950 more than their current pay.
In London, a full-time worker on the Living Wage rate would earn an additional £4,777.50 a year compared to a worker on the current government minimum.
Katherine Chapman, Living Wage Foundation director, said: “With living costs rising so rapidly, millions are facing an awful “heat or eat” choice this winter- that’s why a real Living Wage is more vital than ever. Today’s new rates will provide hundreds of thousands of workers and their families with greater security and stability during these incredibly difficult times.
“We are facing unprecedented challenges with the cost-of-living crisis, but businesses continue to step up and support workers by signing up to the Living Wage in record numbers. We know that the Living Wage is good for employers as well as workers, that’s why the real Living Wage must continue to be at the heart of solutions to tackle the cost-of-living crisis.”
Employers are asked to implement the rise as soon as possible, but by May 14th 2023 at the latest.