More than 21,000 people working for nearly 600 real Living Wage Employers in Wales are set for a pay boost as the real Living Wage rates rise to £13.45 an hour.
Recent research by the Living Wage Foundation suggests that as inflation grew over the past year, 4.5 million low-paid workers across the UK have struggled to make ends meet, with two in five (42%) using foodbanks in the past year, rising to over half (56%) of low-paid workers with dependent children.
The real Living Wage is different to the statutory minimum wage rate, which is called the ‘National Living Wage’ for those over the age of 21. The real Living Wage is a higher, voluntary rate that is independently calculated based solely on what is needed to cover living costs and live with stability and security. This includes covering household costs such as rent and energy bills, childcare and transport, as well as important costs like a warm winter coat for children, or a financial emergency like a broken boiler. The Government’s rate is the legal minimum businesses are required to pay by law.
The real Living Wage applies to all workers over the age of 18 working for a Living Wage Employer and is £13.45 an hour across the UK and £14.80 an hour in London. The National Living Wage applies to those over the age of 21 and is worth £12.21 an hour.
A full-time worker in Wales earning the new, real Living Wage would earn £2,418 a year more than a worker earning the current Government minimum.
Living Wage Employers commit to paying all their staff, as well as their third-party contractors like cleaners and security guards, at least the real Living Wage. Across the UK, one in seven employees now works for an accredited Living Wage Employer.
There are now nearly 600 Living Wage Employers in Wales, with recent accreditations including Principality Building Society. They join half of the FTSE 100 companies including Diageo, household names like Aviva, Everton FC, IKEA, as well as thousands of small businesses.
Katherine Chapman, Executive Director of the Living Wage Foundation, said:
“We all need a wage that covers life’s essentials, and the real Living Wage is the only UK wage rate independently calculated based solely on what is needed to cover rising living costs. The new rates will make a massive difference to workers and their families, helping them to better cope with the costs of rent, bills, food and other essentials, and to live with stability and security.
“Despite the challenges businesses face, the Living Wage employer movement continues to grow. These leading employers are showing that paying the real Living Wage has a far-reaching impact on staff, businesses and society.”
Alec Merriman, Owner of Little Valley Bakery, said:
“As a small business in Swansea, we believe strongly in our commitment to the real Living Wage. Everyone is facing challenges with the cost of living, and as a business we want to ensure our staff are looked after.
“We want to do our bit to put money in people’s pockets in Swansea and Gower, where our bakeries are based. Not only does that benefit our staff, but we believe that it ultimately benefits businesses like our own, too. We encourage everyone who can to become a Living Wage Employer.”
