The Living Wage Foundation announces the largest rise in the voluntary rate ever enacted, stating that an additional £2,000 per year should provide significant assistance to full-time employees who must choose between heating and eating.
The actual living wage has been increased sooner than usual to offer tens of thousands of workers with additional financial support during the cost of living crisis.
The Living Wage Foundation, which determines the hourly rates that employers can elect to pay, said that they would increase by £1 to £10.90 across the United Kingdom and by 90p to £11.95.
The rates, which are independently estimated based on what people require to live, are higher than the legal minimum wage of £9.50 per hour for adults.
They are paid by over 11,000 firms that have enrolled in the program.
According to the foundation, 390,000 people would benefit to the tune of about £2,000 per full-time employee.
It was also noted that the new rates were now worth £2,700 per year more to full-time workers in the United Kingdom than the national minimum wage, and almost £5,000 more in London.
The hikes are implemented at a time when the rate of inflation is at a 40-year high of approximately 10%.
According to foundation director Katherine Chapman, the 10.1% increase in the real living wage rate in the United Kingdom was the greatest annual increase implemented.
She stated, “Because of the escalating cost of living, millions will be forced to choose between heating and eating this winter, making a decent wage more important than ever.
Hundreds of thousands of workers and their families will experience greater security and stability as a result of the revised rates implemented today.
“We face unprecedented challenges due to the cost-of-living issue, but employers continue to help workers by signing up in record numbers for the Living Wage.
“Because we know that the Living Wage benefits both companies and employees, the true living wage must remain at the center of solutions to the cost-of-living challenge.”
According to the foundation, the number of firms paying a true living wage has more than doubled in the previous two years, with new additions such as the Royal Albert Hall, Aston University, and the ExCel Centre.
They join half of the FTSE 100, including Aviva, Everton FC, Ikea, Burberry, and Lush, as well as thousands of small businesses.
