WORDS: SUE HAYWARD WWW.SUEHAYWARDMEDIA.COM Consumer expert Sue Hayward’s savvy finance tips and advice.
Sue’s Guide The Living Wage
When it comes to the rock bottom rate you can be paid for the job you do, the government sets what’s called a “national living wage”.
It’s more often called the “minimum wage” and is the basic minimum hourly rate employers can legally pay. Of course, many companies pay their staff a lot more than this, but the idea is that the “minimum” wage is there as the absolute minimum pay rate.
However, the campaign group Living Wage Foundation says this isn’t enough, especially when you look at the costs for the average household in terms of bills and food. It recommends a higher hourly pay rate, and companies can sign up and pledge to pay this to their staff.
Over 14,000 companies are signed up, including big names like Aviva, Nationwide, Ikea and Lush.
The Living Wage Foundation has recently announced higher rates for the real living wage, meaning that over half a million workers should get a 10% pay rise. It’s gone from £10.90 an hour to £12 across most of the country, and from £11.95 to £13.15 across London. Over the course of a year, this can really add up, with the difference between the “minimum wage” and the higher “real living wage” around £3,000 over a year.
Companies signed up to the Living Wage have until May 2024 to start paying the higher rate, although many may be doing so already.
Check if your employer is among those choosing to pay the higher voluntary rate on the Living Wage Foundation website at
livingwage.org.uk/accredited-living-wage-employers
SUE’S TIPS:
◆ The national living wage is often called the “minimum wage”. It’s the legal minimum that companies must pay workers aged 23 and over.
◆ Companies can choose whether to sign up and agree to pay the higher real living wage rate.
◆ The Living Wage Foundation say 60% of those earning less than the “real living wage” end up using food banks.
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