The new Living Wage rate was announced on October 23, 2024, as the cost of living crisis continues to hit low-paid workers the hardest. The new hourly rate for London is £13.85, and £12.60 for the rest of the UK.
Thousands more for workers
Earning a real Living Wage makes a tangible difference in workers’ lives. Across the partnered boroughs in South London – Lambeth, Southwark, Lewisham, Greenwich and Merton – the London Living Wage has put an extra £1,092 a year back into the pockets of 26,782 low paid staff (each), as more and more employers choose to become accredited Living Wage Employers.
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.
Business benefits
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 there is growing awareness of the business 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 Irfan Mohammed, Deputy Lambeth Cabinet Member for Employment and Skills, said:
“At the start of November, Lambeth will lead a first-time partnership with four other South London boroughs to celebrate Living Wage Week and host a “Good work and inclusive employment” event in partnership with the Royal Foundation Homewards, flexible working expert timewise and fair pay champion The Living Wage Foundation.
“Lambeth has been working since early this year with a Living Wage Action Group representing local employers across all sectors to meet our aim of becoming a Living Wage Place – a borough where everyone gets paid at least the London Living Wage for every hour they work.”
More information
- For more about the Living Wage hourly rate increase see the Living Wage Foundation website.
- For more about support from Lambeth Council, including advice on becoming an accredited Living Wage Employer email: livingwage@lambeth.gov.uk
