The voluntary living wage for workers living in London has increased 35p to £9.75 per hour, to reflect the higher cost of living facing families in the city – an increase of 3.7%
This means that a full-time worker aged 25 or over on the voluntary living wage in London could earn £95 a week more than if they were paid the government’s national living wage (NLW) of £7.20 for over 25-year-olds.
Outside of London and elsewhere in the UK the voluntary living wage rate, as calculated by the Living Wage Foundation, has increased by 20p to £8.45 per hour, making it 17% higher than the Government’s NLW. Therefore, over-25s elsewhere in the UK would be £45 a week better off.
However, the new rates will pose a challenge to employers in low-paying sectors such as retail, caring and hospitality.
Note: As long as employers are meeting the Government set National Living (or Minimum) Wage rate — currently set at £7.20 per hour for workers aged 25 or over, these other rates are purely voluntary.