Real Living Wage goes up to £12 an hour today
The voluntary so-called Real Living Wage is to increase by 10% to reflect the ongoing cost-of-living crisis for workers, it has been announced.
Last updated 24th Oct 2023
More than 460,000 people working for 14,000 employers who pay the rate will receive a wage rise.
The Living Wage Foundation said its rates will increase to £12 an hour outside London - a rise of £1.10.
The foundation said the 10% rise, coming into effect today, reflects "persistently high costs" for low-paid workers.
The voluntary rate, which applies to everyone over the age of 18, compares to the statutory National Living Wage for over-23s of £10.42 an hour.
A full-time worker earning the new Real Living Wage will earn £3,081 a year more than someone on the current government minimum, according to the foundation.
Its research found that, despite easing inflation, the cost-of-living crisis is far from over for low-paid workers, with 50% worse off than a year ago.
More than two in five low-paid workers say they regularly use a food bank and almost as many report falling behind on household bills, said the foundation.
We spoke to people in Birmingham who have mixed reviews of the wage increase. Some are happy about the extra money and others say it won't make a difference.
Unite the Union's Political Officer for the West Midlands, Zoe Mayou told us, they welcome the increased hourly rate but it's still not enough.
"By just raising the national minimum wage, it shouldn't be the end of the government tackling these issues that are affecting everyone across the economy.
"We can't just congratulate on one point without looking at all the other issues that are impacting on people."
Living Wage Foundation director Katherine Chapman 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."
The foundation said record numbers of employers are signing up to pay the voluntary rates.