More employers should sign up to the Voluntary Living Wage, says the TUC.
The Living Wage Foundation recently announced that the UK Voluntary Living Wage will increase by 30p to £8.75 per hour. The London Living Wage rate will increase by 45p to £10.20.
The campaigning group behind the Voluntary Living Wage, the Living Wage Foundation, recently announced a rise in the rate by 30p an hour to £8.75, and by 45p to £10.20 an hour for those living in London.
Around 3,600 firms are signed up to the scheme, including Ikea and Google. It is separate from the government’s compulsory National Minimum Wage (NMW) and the National Living Wage (NLW).
TUC general secretary, Frances O’Grady, told Reward Strategy: “Extending the Living Wage is vital. Millions of people are living in poverty despite being part of working households.
"These new rates would make a big difference to Britain’s lowest-paid. And they would help families keep their heads above water.
“But more companies need to sign up. Profits in the UK are at record levels. Yet many bosses are still refusing to invest in their staff.
“Smart employers know the value of paying the real Living Wage. It reduces staff turnover and boosts productivity levels.”
The Voluntary Living Wage rates are independently calculated, based on the real cost of living in the UK and London. The 2017 increases have been largely driven by higher inflation feeding through to the basket of goods and services that underpin the rates, with rising private rents and transport costs also having an impact.
The National Living Wage, compulsory for workers aged 25 and over, currently stands at £7.50 an hour. This is set annually by the government on 1 April, following consulation by the Low Pay Commission (LPC).