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Published: Tue, November 07, 2017
Economy | By Melissa Porter

UK's living wage increases 4.6pc in London

UK's living wage increases 4.6pc in London

Workers earning the Living Wage are set to receive a pay rise.

The Mayor of London, Sadiq Khan, today announced a landmark increase in the London Living Wage, from £9.75 to £10.20 per hour - a 4.6 per cent rise and the first time the wage has been more than £10.

Director of the Living Wage Foundation, Katherine Chapman, said that the living wage is necessary because it reflects the "real cost of living in the United Kingdom and London". "It's thanks to the leadership of over 3,600 employers across the United Kingdom who are committed to paying all their staff, including cleaners and security staff, a real living wage".

The pay rate will rise 3.6% to £8.75 per hour around the United Kingdom and 4.6% to £10.20 in London, giving a wages boost to workers at companies which have adopted the measure, including Google and IKEA.

Hundreds of Lidl workers are set for a pay increase as the discount retailer pushes to pay its workers the living wage.

Expectations for living costs over the next 12 months were at a four-year high for both those earnings above and below the Living Wage in October 2017.

"It is clear that it may not be possible or practical for everyone, but businesses need to do what they can to address the problem of low pay".

It's important to note that the "real" living wage is different from the government's national minimum wage, now known as the National Living Wage (if you're over 25).

Lidl is clearly dedicated to the living wage, having previous form when it comes to investing in it, so we can expect the chain to put its money where its mouth is.

Chapman said the national living wage was not enough to cover the true cost of living, particularly in London.

A damning study has today revealed one in five Brits are now trapped in working poverty as inflation continues to outpace wage growth.

The Foundation said Heathrow was among 150 organisations to have joined its ranks in recent times - the airport's parent firm agreeing to pay all its workers at least the voluntary rate by 2020. "We encourage other employers in Oxford to adopt the Oxford Living Wage".

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