Over 300,000 Britons get large pay rise as real Living Wage increases

Housing: PM announces changes to Universal Credit rules

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The wage has increased by £1 an hour, from £9.90 to £10.90, while the London Living Wage has gone up from £11.05 to £11.95. The increased real Living Wage is more than £1 higher than the National Living Wage, which is currently at £9.50.

Employers are asked to implement the rise as soon as possible, by the latest by May 14, 2023.

The rate is calculated each year by the Resolution Foundation and overseen by the Living Wage Commission, based on the standard of living in the UK.

This is totally separate from the National Living Wage, which is the minimum amount an employer has to pay a worker over the age of 23, while the National Minimum Wage applies to people under the age of 23.

Charles Cotton, senior reward adviser for the CIPD (Chartered Institute of Personnel and Development), hailed the change but said it may not be enough for struggling Britons.


He said: “This is a significant increase to the real Living Wage and shows the importance of fair pay and good work for UK workers.

“While the increase in the real Living Wage will be welcome by millions of low-waged workers, it may not be enough to improve financial conditions for some of the lowest paid employees, in the current cost of living crisis.

“Employers should also consider other ways they can support employee’s financial wellbeing.

“As well as offering enough hours for staff to have a decent standard of living, organisations should review aspects of employment such as flexible working, career progression opportunities, and financial wellbeing benefits, for example occupational sick pay or hardship loans.

“There is also the challenge of businesses being able to afford this increase, as they too are suffering from significant cost increases.”

The Government has just unveiled an Energy Bill Relief Scheme, providing discounts on wholesale gas and electricity for non-domestic customers, including businesses.

Mr Cotton said: “The latest Government support package for businesses should relieve some of the immediate cost pressures being endured by many employers, and we would still encourage workplaces to explore how they can help low-waged workers over this difficult period.

“The most sustainable way for employers to pay more is through improved productivity. This doesn’t mean forcing staff to work harder, but smarter.

“Employers should review how jobs, tasks and workplaces are designed to see where improvements can be made.”

The real Living Wage launched in 2011 and has risen steadily from the original amount of £7.20.

Many large employers pay the real Living Wage, including Google, Ikea and Nationwide Building Society.

The number of employers signed up to the scheme has more than doubled over the pas two years.

The state-mandated National Living Wage is currently £9.50 for workers aged 23 and over.

People on low incomes are receiving a £650 one-off payment to help with the soaring cost of living.

The first instalment, of £326, has been paid to people on Universal Credit and on Tax Credits.

Ministers are yet to confirm the dates for when the second payment will land in people’s bank accounts.

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