A 10% increase in the real Living Wage was announced on October 24, 2023 as the cost of living crisis continues to hit low-paid workers the hardest. The new rates are £12 across the UK, and £13.15 in London.
Thousands more for workers
According to Living Wage Foundation calculations, the new rates mean that someone working full-time for an accredited London Living Wage employer in Lambeth will earn £5,323.50 a year more than someone on the Government-approved minimum wage – thousands of pounds more for workers at a time when it matters most.
Linked to the cost of living
Living Wage is still the only UK wage rate that is based on the cost of living, and the rate increase reflects the continued price rises that UK households face. The Living Wage Foundation sets the rate after consultation with households on the cost of essentials like the weekly shop and household bills.
Record numbers
All Living Wage Employers must start playing the increased wages within six months of the rate change, giving workers a vital cost-of-living pay boost to meet their everyday needs. Of course, the new, higher hourly rate means rising costs for those employers who are taking a lead in paying Living Wage, but over the past six months, record numbers of businesses have become Accredited Living Wage employers. There is growing awareness of the benefits to employers and the boost to their reputation, as well as recognition that paying a real Living Wage is a lifeline for workers.
Word from the Cabinet
Cllr Jacqui Dyer, Lambeth Cabinet Member for Employment and Skills, said:
“Just last week, Lambeth launched our bid to become a Living Wage Place – a borough where everyone gets paid at least the London Living Wage for every hour they work. We will support employers with our newly launched Business Grant.”
“Fair pay based on the real cost of living is an essential ally for people facing in-work poverty and the cost-of-living crisis. Living Wage Foundation figures show that Living Wage employers in Lambeth have already put over £3 million back into the local economy.”
More information
- For more about the Living Wage hourly rate increase see the Living Wage Foundation pages
- For more See the one-minute video on making Lambeth a Living Wage Place
