As of today, the wages of nearly half a million workers in the United Kingdom will receive a 10 percent increase, providing much-needed relief amid the ongoing cost-of-living crisis.
Over 460,000 employees across 14,000 companies will see their pay rise, aiming to better align their earnings with the increasing cost of essential goods and services.
The new wage structure raises the minimum pay rate to £12 an hour for those working outside of London, marking an increase of £1.10. For workers in the capital, the new minimum rate will be £13.15 per hour, reflecting a £1.20 raise.
Katherine Chapman, the director of the Living Wage Foundation, said, “As inflation eases, we cannot forget that low-paid workers remain at the sharp end of the cost-of-living crisis.
“Low-paid workers continue to struggle with stubbornly high prices because they spend a larger share of their budget on food and energy. These new rates are a lifeline for the 460,000 workers who will get a pay rise.”
Christina McAnea, the general secretary of Unison, commended employers who have chosen to pay their workers a decent wage, emphasising that this is positive news for hundreds of thousands of low-paid employees.
This wage increase is applicable to employers who have voluntarily signed up for the Real Living Wage scheme, established by the Living Wage Foundation charity, which sets a wage rate higher than the government’s minimum wage. The new rate applies to all workers over the age of 18 and surpasses the statutory National Living Wage, which is £10.42 an hour for those aged over 23.
As a result, a full-time worker paid the new Real Living Wage can expect to earn £3,081 more per year than someone earning the current government minimum wage. For those working in London, this could mean an additional £5,323, according to the foundation.
These developments come at a time when over two in five low-paid workers report frequent use of food banks and struggling to keep up with household bills.
Unison’s general secretary added, “Many more providing essential public services will miss out. These employees include care workers, who’re often on poverty pay, in a sector already struggling to fill record vacancies.
“Today’s increase means thousands of workers employed by the NHS on the lowest pay bands – like porters, cleaners, domestics and security staff – will be significantly short of the new rate.
“The Government must follow suit and boost the minimum wage so millions are better able to weather the cost-of-living pressures causing such deep financial pain.”
[Image created via MidJourney]