Over 30,000 low-paid workers set for living wage rise boost of around £400 a year
The rate has increased to £7.65 outside London and £8.80 in the capital
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Your support makes all the difference.More than 30,000 Britons on low incomes are set to get a pay rise of up to £400 a year following an increase in the Living Wage rate.
The voluntarily minimum pay rate, which is set to cover the basic cost of living, has gone up by 20p to £7.65 an hour in the UK. In London, where living expenses are higher, the rate is up by 25p to £8.80.
The rate is significantly higher than the legal minimum wage of £6.31 an hour for adults over 21 and reflects the soaring costs of food and other essentials.
The new London rate was announced on Monday at Great Ormond Street hospital, which is the 432nd employer to sign up to the scheme.
Speaking at the launch, Boris Johnson said paying a Living Wage was in keeping with being a “believer in Capitalism” and Thatcherite ideals as well as those of social justice. He is expected to urge business leaders to do the same on Monday afternoon at a conference of the Confederation of British Industry (CBI).
The Mayor of London said of his backing of the scheme: “It’s not just because we’re moved by social justice or compassion… I support this because it is pure economic common sense. It’s the right thing for our city and it’s the right thing for our people.”
Ed Miliband announced that Labour would give tax breaks to companies who paid their workers a Living Wage in yesterday’s Independent on Sunday.
The Labour leader said: “Hundreds of businesses, charities, Labour councils across Britain, and the Citizens UK Living Wage campaign are already showing how we can make work pay. A One Nation Labour government will work with employers in both the public and private sector to tackle low wages. Together we can help lift more people out of poverty with decent pay, raise productivity, and control spending on welfare.”
The Living Wage rate is updated every year to reflect the current costs of living. With bills for essentials such as food and energy rising steeply, experts believe last month’s national minimum wage rise of 12p an hour was significantly below what is needed to live in Britain.
The director of the Living Wage Foundation, Rhys Moore, said: “Living Wage Week is about employers taking a lead and tackling the problem of low pay. The Living Wage has become a must have badge of honour for employers. By looking out for the Living Wage badge you can now choose to support businesses that are doing right thing. It works just like Fairtrade and will grow even faster with consumer support.”
There are now 432 employers signed up to the campaign, up from 78 a year ago. This includes major household names such as Barclays, Oxfam, Legal and General, the National Portrait Gallery, First Transpennine Express and KPMG. Numerous smaller businesses, town halls and charities have also pledged to pay it throughout their supply chain.
The charity Citizens UK has been leading a campaign on the issue for more than 10 years. Rabbi Miriam Berger said: “ This is a call to action for responsible employers. We are thrilled that so many companies are already signed up, but there are many more that could pay the Living Wage. The CBI are meeting in London today and we call on them to respond positively to the challenge.
Case study: 'I can afford my son's karate lessons'
Lacey Green, 21, from south London works for Faucet Inns, the first pub chain to sign up to the Living Wage.
“Getting the living wage makes a big difference; it just means being able to afford more things. My five-year-old son, Tyler, can go to karate and football after school now. Or if he wants to go to the theatre or the cinema I can afford it.
“I’ve been working for Faucet Inns since March now and I’m a supervisor and a trainee assistant manager. I’ve got friends working for the minimum wage and they all want to work for a Living Wage company. Companies should sign up to this because it makes you feel appreciated as an employee.
“It’s important because it’s so expensive to try and live in London. I’ve noticed over the last five years how much the price of things like coffee and bread has gone up. People expect you to be able to feed everyone and pay your rent on the minimum wage, but you’ll always struggle.”
Case study: 'Poor people’s conditions are getting worse'
Kathy Rojas, 42, from south London, is a Whitehall cleaner earning £6.54 per hour.
"I’ve worked as a cleaner in Whitehall for more than three years. I work from 6am to 2pm. A lot of us are angry. The company we work for makes an £8bn profit and they tell us they can’t afford to pay us a living wage.
"We work hard for the company. We want to help the company, we want the company to do well. If they were making huge profits but paying us correctly, then we wouldn’t have a problem.
"This isn’t just about cleaners. Poor people’s conditions are getting worse everywhere. We work like donkeys while our employers are becoming richer. The living wage is about justice."
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