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Topics: Cost of Living, Business, UK News, Money
Joshua Nair
Topics: Cost of Living, Business, UK News, Money
Thousands of companies across the country are giving their workers a pay rise from today (23 October).
The UK is making big changes to its Real Living Wage, of which hundreds of thousands of employees around the country were being paid, to keep up with the cost-of-living crisis that doesn't seem to be slowing down any time soon.
As we know, the National Living Wage increased across the country in April this year, going from £10.42 to £11.44 for those aged 21 and over, but the changes haven't stopped there. The Real Living Wage is also seeing an increase across the board, directly affecting some of Britain's biggest companies.
Up to an increase of £2,262 a year will be paid out to numerous employees on the Real Living Wage compared to the National Living Wage, all thanks to the campaign group that sets the rate, the Living Wage Foundation.
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Here's everything you need to know, including which companies are involved in the welcome pay increase.
Over 15,000 businesses in the UK are signed up to the Real Living Wage, which, unlike the National Living Wage, is a voluntary scheme.
The National Living Wage is set by the UK government, and it is statutory for all businesses, with this rate currently standing at £11.44 per hour for those 21 and over, anywhere in the country.
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However, the Real Living Wage is paid to workers that are 18 or older and can be chosen to be paid by companies, as it more accurately reflects the cost-of-living in the country.
As the Living Wage Foundation explains: "The real Living Wage is the only UK wage rate based on the cost of living. It is voluntarily paid by over 15,000 UK businesses who believe their staff deserve a wage which meets everyday needs - like the weekly shop, or a surprise trip to the dentist."
It has recently increased from £12 and £13.15 in London to £12.60 an hour, and £13.85 in London, for workers at the businesses that voluntarily pay the wage.
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For those aged 18-20, the difference between earning the Real Living Wage of £12.60 and the National Living Wage of £8.60 an hour is massive, and may encourage more to venture into work earlier in their lives.
It is said that a record number of employers have signed up to pay the voluntary Real Living Wage, with it working out to one in nine employees now working for an employer that pays the new rates.
However, there is no real date that you should expect to see these rates, though employers that have signed up have been given the deadline of 1 May, 2025 to pay their rates, and have been pushed to pay it as soon as they can.
According to livingwage.org.uk, exactly 15,595 companies have signed up to pay the Real Living Wage.
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Here are some of the bigger names:
To view the full list, click here.