LIFT OFF
Thousands get living wage boost of up to 45p an hour
THOUSANDS of workers will get a pay rise today thanks to an increase in the real living wage.
The hourly rate rises 30p to £8.75 and, in London, by 45p to £10.20. The Government’s national minimum wage is £7.50 for over-25s.
Today Heathrow Airport joined the 3,600-plus firms and organisers, including Liverpool FC, IKEA, Unilever and Aviva, which voluntarily pay the real living wage.
The pay rise follows research by accountancy firm KPMG showing 5.5 million people in the UK – 21% of the workforce – are paid less than the voluntary rates. Katherine Chapman, director of the Living Wage Foundation which sets the rates, said: “The new rates will bring relief for thousands of UK workers being squeezed by stagnant wages and rising inflation.
“Great businesses know, even in these tough times, not only is fair pay the right thing to do but paying the real living wage brings big benefits. Nine out of 10 accredited living wage employers report real benefits including improved retention, reputation, recruitment and motivation.”
Heathrow chief executive John Holland-Kaye said: “We believe paying the living wage is right. “It’ll help us to attract and retain the best people, supporting them in building a rewarding career at Heathrow.” TUC general secretary Frances O’Grady said the living wage had to be extended as millions of people are living in poverty despite being part of working households.
She said: “More companies need to sign up. Profits in the UK are at record levels, yet many bosses are still refusing to invest in their staff.
“Smart employers know the value of paying the real living wage. It reduces staff turnover and boosts productivity levels.”
London Mayor Sadiq Khan was delighted by the rise but said two million people in the capital are struggling to make ends meet.