Real Living Wage rises to £10.90 an hour

Some 400,000 workers at businesses that have volunteered to pay the Real Living Wage are set to get a pay boost.

The hourly rates are rising by £1 to £10.90 across the UK and by 90p to £11.95 in London with immediate effect.

The Living Wage Foundation has brought forward its November rate rise due to the soaring cost of living.

But critics say some firms faced with prices hikes will struggle to afford it. The National Minimum Wage is £9.50 an hour for those aged 23 and over.

The cost of living is increasing at nearly its fastest rate in 40 years, driven largely by the rising cost of food and fuel. Prices in August were 9.9% higher than they were 12 months ago.

Katherine Chapman, director of the Living Wage Foundation, said millions were facing a "heat or eat" choice this winter.

"Today's new rates will provide hundreds of thousands of workers and their families with greater security and stability during these incredibly difficult times."

Charles Cotton, senior reward adviser for the CIPD, the professional body for HR and people development, called the pay rise "significant".

But he said it may not be enough to help some of the lowest-paid employees facing the rising cost of living and urged employers to look at other ways of supporting staff.

"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," he said.

He said some businesses may struggle to afford the new Real Living Wage as they are grappling with cost increases themselves.

The number of employers accredited by the Living Wage Foundation has more than doubled in the past two years to 11,000.

Major new names include the Royal Albert Hall, Aston University, and the ExCeL centre in London.

They join half of the FTSE 100 companies, including Aviva, Everton FC, Ikea, Burberry and Lush as well as thousands of smaller businesses.

There are now also 39 "living hours" employers, such as Aviva and West Bromwich Building Society, which guarantee a minimum of 16 hours work a week and a month's notice of shift patterns.

Chris Smallwood, owner of Anchor Removals, based in Worsley, Manchester said he became a Living Wage employer in 2016.

He said: "When I get up in the morning, I can look myself in the mirror knowing all the good things around me are not at the expense of other people, because I've paid them well," he said.

"Think of the benefit to individuals, but also society, by paying a wage that enables workers to stand on their own two feet."

Mr Smallwood employs Gavin Ryan who said when he started working at Anchor Removals 10 years ago, he struggled with the wages.

"Now, I have stability and job security, and the wages have helped me move out of my mum's house and into a home with my partner," he said.

"I can also look after my daughter and buy her the things she needs. During the pandemic, my partner lost her job as a travel consultant and went to work for a supermarket.

"Her hours and pay were not great, but because I was earning the Living Wage with guaranteed hours, I knew I could support her. It was a life saver."

Unison general secretary Christina McAnea said that lower-paid workers were, however, "still crying out for help".

She called on the government to introduce an increase to the (compulsory) national minimum wage "without delay" to ease the burden for those "feeling genuine financial pain".