Scots on minimum wage earn £8,400 less

Full-time workers in Scotland paid the legal minimum rate have lost out on more than £8,000 over the last five years compared to those on the so-called Real Living Wage, according to an industry body.

Workers are being urged to check their pay packets as the National Living Wage rises by 2.2 per cent to £8.91 today, the equivalent of more than £345 extra a year for a fulltime employee. The rise will benefit around 147,000 Scots and will also go to 23 and 24-year-olds for the first time.

However since its introduction more than five years ago, the Living Wage Foundation found a full-time worker north of the Border on the legal minimum has lost out on £8,400 compared to those earning the Real Living Wage.

The Real Living Wage stands at £9.50 and a fulltime worker over the age of 23 earning this will receive £1,150 more over the coming year compared to a worker earning the minimum wage. It is voluntarily paid by more than 1,900 Scottish employers who "choose to go beyond the government minimum".

According to the Poverty Alliance, around 300 companies have signed up for Living Wage accreditation since the first coronavirus lockdown last March. UK Business Secretary Kwasi Kwarteng said: "This increase will give around 150,000 Scots and their families additional financial security as the UK starts to recover from the pandemic.

"I'd urge all workers to check their pay packet to ensure they're getting what they are entitled to, and remind employers of their duty to pay their employees the correct wage."