Minimum wage rise kicks in today but still falls short of real Living Wage

The rise in the National Living Wage still falls short of the voluntary real Living Wage, the only wage rate calculated based on the cost of living, which is currently £12 for workers in the UK.

The real Living Wage, an unofficial hourly rate, is overseen by the Living Wage Foundation charity.

It is based on the amount the charity believes people need to earn. It says the difference between the National Living Wage and the real Living Wage equates to over £1000 per year less.

Katherine Chapman, Director of the Living Wage Foundation, said: “The rise in the statutory National Living Wage from 1st April is welcome news for the 3.7 million low-paid workers across the country, but this still falls short of a wage that takes into account the real cost of living.

The voluntary real Living Wage is £12 an hour (£13.15 for workers in London) and allows people in the UK to live a decent standard of life. Over 14,000 employers across the UK are Living Wage accredited and committed to going above the government minimum to ensure their staff are always paid in line with the cost of living.

Over the last few years of tough economic times, it has been heartening to see so many more businesses join the movement. As well as being good for workers and their families, businesses that pay the real Living Wage report improved staff retention and productivity. We encourage other organisations who can, to make the Living Wage commitment too.”