REAL LIVING WAGE RISES TO £14.10 AN HOUR ACROSS UK

The Living Wage Foundation has announced new rates for its voluntary real living wage. Across the UK, the rate will rise to £14.10 an hour, up 65p, or 4.8%. In London, it will rise to £15.45 an hour, also up 65p, a 4.4% increase. The foundation said close to 17,000 employers are signed up to pay the rate, which is based on the actual cost of essentials such as housing, food and energy. According to the foundation, almost 500,000 employees, including workers in Northern Ireland, will receive rises of more than 4%, worth over £1,000 a year to those affected.

The real living wage differs from the government's statutory National Living Wage, which is £12.71 an hour for employees aged 21 and over. The foundation's analysis suggests a worker paid the real living wage earns more than £2,700 a year more than someone on the government minimum. It estimates that one in seven UK employees works for an employer signed up to the voluntary scheme. Employers paying the rate include Uniqlo, Ikea, Lush, Transport for London, Nationwide Building Society and Liverpool Football Club.

The announcement marks the 25th anniversary of the living wage campaign, according to the foundation. Emily Sawh, its co-director, said the rise would make "a massive difference" to hundreds of thousands of workers and their families. She said recipients would be more than £1,250 better off this year as a result of the increase. Sawh said the campaign began with low-paid workers in east London organising for decent pay. She said it has since grown into one of the most successful campaigns of the century, returning billions of pounds to workers nationwide.