The number of UK employers voluntarily paying the higher Living Wage has risen by 19% over the past year, despite signs of a cooling labour market and pressure from statutory wage increases.
Figures from the Living Wage Foundation show that 16,040 employers are now accredited as paying the voluntary Living Wage — a rate set higher than the government’s statutory minimum. That’s up from just over 13,400 a year ago, with private sector companies, public bodies and charities all committing to higher wages for their lowest-paid staff.
The voluntary rates currently stand at £12.60 an hour across the UK and £13.85 in London, significantly above the £12.21 statutory minimum wage introduced in April for workers aged 21 and over. In the capital, this means Living Wage employers pay 13% more than the legal minimum, and 3.2% more across the rest of the UK.
The wage rates are set annually by the Resolution Foundation and overseen by the Living Wage Foundation, based on the real cost of living rather than government policy.
Among the businesses paying the Living Wage are major brands such as Ikea, Fred Perry, and Aviva. A study conducted by Cardiff Business School for the Living Wage Foundation found that employers adopting the scheme often reported “modest but positive” benefits, including improvements in reputation, staff retention, and people management.
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